Air Asia X, a three-year old Malaysian airline specializing in long-haul flights, negotiated an engine order with GE Aviation for three new A330-200 aircrafts. GE Aviation belongs to the General Electric Company (GE) group.
The models, manufactured by Airbus, are gigantic planes capable of carrying 290 passengers from Kuala Lumpur to London. The planes are equipped with dual-engines making them one the most fuel-efficient aircraft in the market.
The deal is valued at $600 million and includes an option for delivery of engines to power two additional aircraft along with a long-term maintenance agreement.
GE has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like services business.
The infrastructure businesses of GE are helping build the energy, health, transportation and technology infrastructure of the new century. These businesses provide the products and services that help developing regions participate in the global economy, while also helping developed regions upgrade with cleaner, more efficient and better infrastructure technologies.
Financial business at GE offers an array of products and services aimed at enabling commercial businesses, consumers and markets worldwide to build a stronger, financially secure future.
The company has adopted strategic imperatives to strengthen its portfolio by building strong growth platforms and generating cash from low-return businesses. Its focus remains on accelerating organic growth and achieving technical and service excellence, while building enduring customer relationships around the world.
GE has products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have broadened considerably the scope of its activities. United Technologies Corporation (UTX) is a major competitor.
We currently have an Outperform recommendation on General Electric.
GENL ELECTRIC (GE): Free Stock Analysis Report
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