GE-Raytheon agreement on long-haul flights
Alliance of engine manufacturers to boost travel demand
Engine manufacturing is a complex segment of the aviation industry and a high-margin one for investors looking to bet on a pandemic recovery. For this reason, some of the leading jet engine manufacturers are defining strategies to put their balance sheets in order, weakened by two years of health and economic emergency.
Among them are US manufacturers General Electric and Raytheon Technologies. Their accounts in the last quarter of 2021 did not excite the market, even if the "commercial aerospace" was one of the brightest spots in the two year-end documents. This is why the companies have formed an alliance in view of the increased demand for long-haul flights.
In fact, the two manufacturers are still making losses in the aviation segment for two reasons: firstly, because of bottlenecks in the supply chain that have damaged sales, but above all because during the crisis airlines stopped bringing aircraft into the workshop. However, as demand for travel picks up, there will be a jump in maintenance services. At that point the two companies are ready to offer joint repair and overhaul services, making up for lost money.
AVIONEWS - World Aeronautical Press Agency