GE Aerospace Plans Over $1 Billion Investment to Expand MRO Facilities and Reduce Turnaround Times

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In a bold move to bolster its maintenance, repair, and overhaul (MRO) services worldwide, GE Aerospace has announced a substantial investment exceeding $1 billion over the next five years. This initiative aims to enhance its MRO facilities and expedite turnaround times for its customers, addressing the increasing demand for after-market services amid a strong rebound in global travel and constraints in new aircraft production.

The aviation industry has been grappling with significant challenges, including a surge in travel demand and a shortage of new planes, primarily due to production delays and engine issues. This situation has forced airlines to extend the operational life of their older jets, further straining MRO resources.

At the forefront of these discussions will be the issue of engine repair delays, a critical topic for industry leaders convening at the 2024 Farnborough Air Show in England next week. Limited capacity at MRO shops has emerged as a key bottleneck, with some airline CEOs even deeming engine repair delays more problematic than production setbacks at Airbus and Boeing.

To tackle these challenges, GE Aerospace aims to reduce the overall turnaround time at its repair shops by 30% compared to the previous year. The investment will see the addition of more engine test cells and the integration of advanced technology across its repair facilities. This move aligns with the company’s earlier commitment to invest over $650 million this year in expanding its manufacturing capabilities and supply chain, as well as further investments to streamline repair processes, though the exact figures remain undisclosed.

A significant portion of this investment will be directed towards MRO facilities for LEAP engines, the powerplants for Airbus and Boeing narrowbody aircraft. GE Aerospace co-produces these engines with France’s Safran through their CFM International joint venture.

Russell Stokes, head of GE Aerospace’s commercial engines and services, emphasized the need for these investments, stating, “Our customers are experiencing strong air travel demand. We are investing so we can meet their growing needs and keep their planes flying safely and reliably.”

According to Bain & Company, turnaround times at engine repair shops increased by 35% for legacy engines and over 150% for new-generation engines post-pandemic. Securing an MRO slot now takes airlines two to three months on average. GE Aerospace, now an independent entity, holds a dominant position in the narrowbody jet engine market and a significant presence in widebody engines. More than 70% of its commercial engine revenue is generated from parts and services.

This year, GE Aerospace has allocated $250 million for upgrades, including the opening of a new facility near Cincinnati, Ohio, in September. This state-of-the-art facility will feature technology capable of detecting chemical anomalies in metal parts, a technique also used in identifying forged artwork.