GE Aerospace closed Friday's trading session at $315.41, marking a 0.8% increase. The company is advancing its maintenance capabilities through increased automation and Lean manufacturing principles to address persistent repair bottlenecks in the aviation sector.
Robotic Precision in Singapore
At its Singapore service center, GE has begun training robots to perform precision repair tasks traditionally handled by skilled technicians. This initiative, part of the "Flight Deck" program, aims to reduce backlogs that have left aircraft grounded for months awaiting maintenance. CEO Larry Culp emphasized this represents consistent daily progress rather than quarter-end pushes.
CFM Partnership and Market Dynamics
CFM International, GE's joint venture with Safran, faces mounting pressure from Airbus to increase deliveries of LEAP engines for the A320neo family. Safran recently raised its 2026 profit forecast to between €6.1 billion and €6.2 billion, citing strong demand for civil engine services. The company reported a 30% increase in civil engine services revenue last year.
Safran CEO Olivier Andries stated CFM aims to meet additional Airbus demand this year but noted commitments align with market share. Meanwhile, Airbus continues separate negotiations with Pratt & Whitney regarding engine supplies for 2026 and 2027.
Future Engine Development
Beyond current supply challenges, CFM is evaluating future propulsion technologies. While advancing its open-fan RISE project promising 20% reductions in fuel consumption and emissions, the partnership is also considering a traditional "advanced ducted" engine as a contingency. GE maintains it remains "all-in on Open Fan" despite acknowledged development challenges.
Investors await Airbus's February 19 report for updates on production targets and engine supply agreements. Trading activity for GE will resume Tuesday following the Washington's Birthday market holiday.
