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GE Aviation on the road to an air transportation record



The smile of David Joyce, CEO of GE Aviation, is hard to miss, especially at the Paris Air Show. The supplier of engines and parts of aircraft is about to book a record number of orders.

"We are looking at $ 35 billion in new business, engines and services and I'm telling you it's conservative," Joyce told CNBC at the Paris Air Show. "If things go as planned this week, we could see ourselves lying north of it with a reasonable number."

GE Aviation signed the largest engine and service contract ever when Indigo, a low-cost carrier based in India, placed a $ 20-billion order for CFM International's LEAP-1A engines to power 280 aircraft Airbus A320neo and A321neo. CFM International is the joint venture of GE Aviation and Safran, a leading aerospace company based in France.

The deal is particularly exciting for Joyce as Indigo moves from CFA International to Pratt and Whitney, a subsidiary of United Technologies, in the engine business. Indigo's order backlog is 430 orders, of which 150 will be powered by Pratt and Whitney engines, the others being powered by CFM LEAP engines.

Overall, aircraft orders at this year's Le Bourget show are slowing, as Boeing did not record a single new order for one of its aircraft on the first day of the show.

Joyce is not worried about the discreet beginning of the series. He believes that the airline sector will remain globally robust. "If you look at the fundamentals, demand growth of 5%, oil is stable, we add one million three starts each year," he said. "It's really a positive show for us this week."

-Méghan Reeder of CNBC contributed to this report.


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