General Electric (NYSE:GE)
Historical Stock Chart
2 Months : From Dec 2019 to Feb 2020
By Benjamin Katz
CFM International, a joint venture between General Electric Co. and France's Safran SA, has struck a deal to increase production of engines for Airbus SE's rival to the 737 MAX, helping CFM deal with Boeing Co.'s production halt of its embattled plane, according to people familiar with the matter.
The agreement will increase the volume of the LEAP 1A engines, one of two turbine options for the Airbus aircraft, to around 58% of total A320neo deliveries, with Pratt & Whitney, a unit of United Technologies Corp. due to slow output to about 42%, the people said. The previous arrangement was for a 50-50 split.
The timing of the deal is crucial for GE as it works out how it will manage the factory slowdown caused by the grounding of the MAX and Boeing's decision this month to halt production.
"We have regular discussions" with plane builders "about potential rate increases," a spokesman for CFM said in a statement.
Write to Benjamin Katz at firstname.lastname@example.org
(END) Dow Jones Newswires
December 20, 2019 11:55 ET (16:55 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.