GE Aviation picks up Rs 5,680 crores engine deal with Air India
GE Aviation along with CFM International and Snecma Moteurs of France have managed to beat the rival Rolls Royce (RR) to bag the Rs 5,680 crores ($1.26 billion) deal to supply engines for Air-India. Air India is in the process of acquiring 68 new Boeing aircraft and the group would be powering these crafts for the Indian international air carrier.
This price is currently the pre-negotiated price for these engines. The final prices would be decided when the price negotiation committee of A-I would meet next week after bargaining with the GE Aviation and CFM International. GE Aviation is the aircraft engine making division of General Electric and is worth more than $12.5 billion in the market.
These engine group manufacturers more than 2,000 aircraft engines per year. Their prime competitor for this deal was the other famous company Rolls Royce which itself has received big orders from the other Indian airline companies. With the Indian aviation sector booming, it becomes important for these companies to offer their services at competitive prices to beat each other.
RR is currently due to supply engines to Air Deccan and Kingfisher Airlines along with IndiGo Airlines. About the Air India deal, spokesperson S Venkat told the media: â€œA meeting of the price negotiation committee will be held next week to finalize the price of the 68 aircraft as well as the engines to be taken from GE and CFM International.â€