GE Aerospace’s $400M ANA Deal Powers 75% of Global Flights

GE Aerospace’s Engine Order With ANA: A New Era in Aviation

GE Aerospace’s recent engine supply deal with Japan’s All Nippon Airways (ANA) marks a pivotal moment for the newly independent company. As the first standalone annual report reveals, GE Aerospace now powers 75% of global commercial flights through its engines and joint ventures. This $400M+ agreement solidifies its position as the backbone of modern aviation while showcasing evolving strategies for sustainable air travel.

The partnership extends beyond hardware – it integrates digital fuel management systems and long-term maintenance contracts. For ANA, this deal supports 40 Boeing 767-300s and next-gen Boeing/Airbus aircraft, blending legacy fleet support with future-ready technology. With aviation accounting for 2.5% of global CO₂ emissions, such collaborations highlight the industry’s push toward net-zero goals through innovation.

The ANA Deal: By the Numbers

ANA’s engine order features GE’s flagship models: the GE9X for Boeing 777X aircraft and GEnx engines for 787 Dreamliners. The GE9X holds the Guinness World Record for thrust (134,300 lbs) while being 10% more fuel-efficient than predecessors. With 950+ GE9X orders pending delivery, this deal accelerates production timelines amid Boeing’s 777X certification process.

Maintenance contracts form 70% of GE Aerospace’s revenue, and the TrueChoice Material agreement with ANA exemplifies this model. By providing CF6-80C2 engine components until 2030, GE ensures continuous revenue streams while airlines defer upfront costs. This “engine-as-a-service” approach has grown 18% annually since 2020, per company filings.

“Our work matters to the world, and we care deeply about how we do it – with relentless focus on safety first,” says GE Aerospace CEO Larry Culp in the 2025 annual report.

Technological Leap: RISE and Sustainability

GE’s Revolutionary Innovation for Sustainable Engines (RISE) program targets 20% lower fuel consumption by 2035 through open-fan architecture and hybrid-electric systems. Partnering with Safran in the CFM International JV, they’re testing ceramic matrix composites that withstand 2,400°F temperatures – critical for higher efficiency.

ANA’s adoption of Fuel Insight software demonstrates digital transformation. This AI tool analyzes 200+ flight parameters in real-time, having already saved 6.4 million gallons of fuel across 85,000 flights since 2022. “Data-driven policymaking is key to our net-zero roadmap,” confirms ANA VP Takashi Kondo.

The hybrid electric propulsion initiative takes shape in NASA’s Electrified Aircraft Propulsion project. GE prototypes aim to reduce emissions 50% by 2030 using superconducting motors – a $1.2B R&D investment area through 2027.

Industry Impact: Supply Chains to Skies

GE Aerospace’s Aviation Supply Chain Integrity Coalition tackles pandemic-induced disruptions. By collaborating with 300+ suppliers, they’ve reduced lead times from 18 to 14 months since 2023. This proves crucial as CFM International targets 2,000 LEAP engines annually by 2025 – up from 1,200 in 2022.

Market forecasts suggest 9.1% CAGR for aircraft engines through 2030 (Market Research Future). GE’s 54% commercial engine market share positions it to capitalize on Asia-Pacific’s booming air travel – projected to require 17,000 new planes by 2042 (Boeing).

“Three of every four flights globally use GE technology. That trust comes with responsibility,” notes Culp on meeting sustainability targets.

Conclusion

GE Aerospace’s ANA contract exemplifies aviation’s dual transformation – maintaining legacy fleets while pioneering decarbonization. With $31B in 2024 revenue and 7.3% operating margin (Q1 2025 earnings), the company balances immediate profitability with long-term R&D bets.

Future challenges include scaling hydrogen-compatible engines and navigating Boeing’s production delays. Yet with 70% of revenue locked in multi-year service agreements, GE Aerospace appears poised to power aviation’s next chapter – one optimized engine at a time.

FAQ

What’s the total value of GE Aerospace’s ANA deal?
While exact figures are confidential, the CF6-80C2 agreement alone exceeds $400M. Including GEnx/GE9X engines and digital services, analysts estimate $1.2-1.5B over 10 years.

Which aircraft models use GE9X engines?
Exclusively designed for Boeing’s 777-9 and 777-8 freighters. First delivery expected in 2025 pending FAA certification.

How does Fuel Insight reduce emissions?
By optimizing climb rates, cruise altitudes, and taxi procedures, it cuts fuel use 2-5% per flight – equivalent to 150,000 cars removed annually at ANA’s scale.

Sources:
GE Aerospace Annual Report,
ANA Engine Agreement,
2025 Market Outlook