General Electric Company
) has been selected as the sole engine maker by
The Boeing Company
) for its entire fleet of its forthcoming 777X plane. The
wide-bodied 777 plane is arguably the most profitable jets for
Boeing in terms of sales and consequently, it is trying to
maintain the success with an updated version that consumes less
fuel and carries more passengers.
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For the earlier versions of 777, the engines were manufactured by
Rolls Royce Holdings plc (RR.L) and Pratt & Whitney, an
operating segment of
United Technologies Corp.
). However, General Electric edged out its rivals to become the
only supplier of engine parts for the longer-range versions that
went into service in the early twenty first century.
The new breed of 777X jets is expected to be operational by the
end of the current decade, although speculations are rife about
the timing of its actual entry as Boeing is presently entangled
in resolving the crisis related to the grounding of its 787
Dreamliner jets. Nevertheless, the selection of General Electric
as the engine maker of 777X jets should augur well in
strengthening its long-term business association with Boeing. In
addition, this is also likely to augment the revenue for General
Electric with a steady demand for the 777X jets.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, it serves customers in more than 100
countries across the world.
Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital. GE Aviation is a leading
supplier of commercial and military jet engines and components.
It also provides avionics, electric power, and mechanical systems
for aircraft along with an extensive global service network to
support these products.
General Electric currently has a Zacks Rank #3 (Hold) while one
of its peers,
Jardine Strategic Holdings Ltd.
), retains a Zacks Rank #1 (Strong Buy).