SAFRY - GE and Safran Trash Boeing CEO's Jet Engine Prediction
Back in April, Boeing (NYSE: BA) CEO Dave Calhoun made a bold prediction. After noting that most new aircraft models have been designed around new engines that are 15% to 20% more efficient than the ones they replace, he opined , "I don't believe the next generation of engines can deliver that kind of performance." He concluded that new aircraft designs from Boeing and Airbus (OTC: EADSY) will be differentiated primarily by innovative engineering and manufacturing processes that can reduce costs.
Top engine maker General Electric (NYSE: GE) and its partner Safran (OTC: SAFRY) disagree. On Monday, their CFM joint venture revealed plans for a new engine program that could deliver a 20%-plus fuel efficiency improvement over its current LEAP family of engines.
The global aviation industry has an official target of reducing carbon emissions by 50% by 2050. To meet that commitment -- even as global air travel volumes continue to grow -- future aircraft will need to have 90% lower emissions than today's fleet, according to Safran CEO Olivier Andries. Shifting to sustainable fuels could significantly reduce carbon emissions over time, but engines will also have to become much more efficient.
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GE and Safran Trash Boeing CEO's Jet Engine Prediction