Key facts
- GE Aerospace CFO Rahul Ghai is confident a mid-seal issue with the GE9X engine will not delay the Boeing 777X's entry into service.
- GE Aerospace has started shipping GE9X engines with a redesigned mid-seal to Boeing.
- The company expects FAA certification for the redesigned part in the next few months.
GE Aerospace Chief Financial Officer Rahul Ghai stated on Thursday that a durability issue with the mid-seal of the GE9X engine will not impede the Boeing 777X's planned entry into service next year. Speaking at a Morgan Stanley conference, Ghai indicated that GE had commenced shipping GE9X engines equipped with a redesigned mid-seal to Boeing during the third quarter. The company anticipates receiving FAA certification for the updated component within the next few months. Aviation Week reported that Boeing stated FAA approval for extended range twin operations (ETOPS) flight tests on the 777-9, a crucial step before certification and deliveries, was on hold pending resolution of the mid-seal issue. Ghai also noted that GE Aerospace does not see broad vertical integration as the answer to aerospace supply-chain constraints, despite agreeing to buy castings supplier Consolidated Precision Products for $11.75 billion, calling the deal a "unique situation." He believes GE can improve CPP's delivery performance, expand production, and speed up new airfoil technology introduction. Ghai added that the industry still needs to add manufacturing capacity in several areas, and the capacity squeeze was not going away quickly. GEnx engine deliveries rose 50% from a year earlier in the second quarter, with GE expecting stronger year-on-year and sequential growth in the third quarter. Airlines are not altering their long-term fleet plans and are being more deliberate about fleet decisions after their experience during the pandemic. GE expects the retirement rate for aircraft powered by older-generation CFM56 engines to be between 1.5% and 2% this year, down from a previous estimate of 2% to 3%.