General Electric’s aviation business collapses due to Covid-19
General Electric Company’s aviation segment plummeted in 2020 due to market disruptions arising from the Covid-19 pandemic.
Thus, for the year ended December 31, 2020, aviation segment orders were down $ 15.1 billion (41% year-over-year), segment revenue was down $ 10.8 billion (33%), and profits fell $ 5.6 billion (82 percent).
At the same time, its aviation order book at the end of December 2020 decreased 12.8 billion dollars (5%) compared to December 31, 2019, mainly due to a reduction in its commercial services portfolio and cancellations of equipment orders. commercial, which included approximately 1,500 order cancellations for LEAP 1-B units and 22 order cancellations for GE9x units.
According to General Electric, the reduction in the commercial services portfolio reflects estimates of lower engine utilization, partial cancellation of long-term service agreements related to equipment unit order cancellations, and anticipated restructuring of the customer fleet and modifications to contracts.
Also, order book adjustments may be necessary in future periods for additional cancellations of your commercial engine orders, fleet withdrawals or changes in the utilization and operating behavior of customer aircraft.
Aviation
In brief, this segment designs and produces commercial and military aircraft engines, integrated engine components, electrical power, and aircraft mechanical systems.
Also the company provides after-sales services to support its products.
Commercial area
On one side, the company manufactures jet engines for commercial airframes.
Its commercial engines power aircraft in all categories: regional, narrow-body and wide-body.
Additionally, General Electric produces and markets engines and aftermarket services through joint ventures with Safran Group of France and Raytheon Technologies Corporation, through its Pratt & Whitney segment.
Finally, the company provides maintenance, component repair and overhaul (MRO) services, including the sale of spare parts.
Military area
On the other hand, General Electric manufactures jet engines for military airframes.
Its military engines power a wide variety of military aircraft, including fighters, bombers, tankers, helicopters, and surveillance aircraft, as well as marine applications.
The company provides maintenance, component repair and overhaul services, including the sale of spare parts.
Aviation, systems and others
Likewise, the company provides engines, components, systems and services for the commercial and military segments.
In particular, this includes engines and components for the business, general aviation and aero-derivatives segments, along with avionics systems, aviation electrical power systems, and gear and transmission components.
By last, the company provides a wide variety of products and services including additive machines from Concept Laser and Arcam EBM, additive materials (including AP&C metal powders) and additive engineering services through its AddWorks consulting brand.
