GE 2014 Annual Report Download - page 61

GE 2014 FORM 10-K 41
MD&A SEGMENT OPERATIONS | AVIATION
AVIATION
BUSINESS OVERVIEW
Leader: David Joyce
Headquarters & Operations
x SVP and President & CEO, GE
Aviation
x Over 30 years of service with
General Electric
x 16% of segment revenues in 2014
x 22% of industrial segment revenues
x 28% of industrial segment profit
x Headquarters: Cincinnati, OH
x Serving customers in 125+ countries
x Employees: approximately 44,000
Products & Services
Aviation designs and produces commercial and military aircraft engines, integrated digital
components, electric power and mechanical aircraft systems. We also provide aftermarket services
to support our products.
x Commercial Engines (CEO) ± manufactures jet engines and turboprops for commercial airframes. Our commercial
engines power aircraft in all categories; regional, narrowbody and widebody. We also manufacture for Business and
General Aviation segments.
x Commercial Services ± provides maintenance, component repair and overhaul services (MRO), including sales of
replacement parts.
x Military ± manufactures jet engines for military airframes. Our military engines power a wide variety of military aircraft
including fighters, bombers, tankers, helicopters and surveillance aircraft, as well as marine applications. We provide
maintenance, component repair and overhaul services (MRO), including sales of replacement parts.
x Systems ± provides components, systems and services for commercial and military segments. This includes avionics
systems, aviation electric power systems, flight efficiency and intelligent operation services, aircraft structures and Avio
Aero.
x We also produce and market engines through CFM International, a company jointly owned by GE and Snecma, a
subsidiary of SAFRAN of France, and Engine Alliance, LLC, a company jointly owned by GE and the Pratt & Whitney
division of United Technologies Corporation. New engines are also being designed and marketed in a joint venture with
Honda Aero, Inc., a division of Honda Motor Co., Ltd.
Competition & Regulation
The global businesses for aircraft jet engines, maintenance component repair and overhaul services (including parts sales) are
highly competitive. Both U.S. and non-U.S. markets are important to the growth and success of the business. Product
development cycles are long and product quality and efficiency are critical to success. Research and development
expenditures are important in this business, as are focused intellectual property strategies and protection of key aircraft engine
design, manufacture, repair and product upgrade technologies. Aircraft engine orders and systems tend to follow military and
airline procurement transactions.
Our product, services and activities are subject to a number of regulators such as by the U.S. Federal Aviation Administration
(FAA), European Aviation Safety Agency (EASA) and other regulatory bodies.