Seeking Alpha

GE wins $1B booking from Vietnam for 787 engines

  • GE (GE) has obtained a $1B order to supply Vietnam Airlines with engines for a fleet of Dreamliners, with the conglomerate beating out competition from Rolls Royce (RRCEF.PK). The official signing of the deal is set to take place next month.
  • The carrier is due to start receiving 19 787-9 aircraft in 2015.
Comments (12)
  • Vietnam Airlines is a cheap, low cost, no-frills airline.

     

    They could not afford Rolls Royce engines.

     

    3 GE 787-engines costs the same as 1 Rolls Royce 787-engine, retail price.
    29 Sep 2013, 05:03 AM Reply Like
  • Are RR engines that much better, if so what makes them 'better'?
    29 Sep 2013, 08:17 AM Reply Like
  • This is what I found out: RR is higher performance and weighs less. As you already know, higher performance requires higher quality parts (ie. BMW, Audi) and greater engineering tolerance values for every one of its components.

     

    For instance: GEnx-1B70 take-off rating is 72,300 lbf, with OPR (overall pressure ratio) of 43.0; compared to RR's Trent 1000-Z more powerful 77,826 lbf (346.19 kN), with higher OPR of 52.1.

     

    I suspect that Boeing 787-9 and -10 will recommend RR Trent 1000-z unless the customer is price-sensitive or route-challenged like Vietnam Airlines.

     

    I'm not an engineer -- but it would be like comparing an Audi to a Ford. Which car would you rather be in if you can afford either one?
    29 Sep 2013, 12:02 PM Reply Like
  • Thanks, that is truly interesting. I never looked at it like the Ford v Audi argument before, but it make sense. Where do Pratt & Whitney fall in the aero egine pecking order? I ask because I have stock in GE and UTX, and PCP for that matter.
    29 Sep 2013, 04:53 PM Reply Like
  • what is "PCP" stock? or was that a typo?

     

    "Precision Castparts Corporation"?

     

    No idea with PCP or UTX.
    29 Sep 2013, 07:58 PM Reply Like
  • Yes Precision Cast Parts, thanks
    30 Sep 2013, 10:45 PM Reply Like
  • Well, I guess the aircraft would have shorter range as a consequence. Right now, VNA does not have direct flight to USA, I don't think that would be changed soon.
    29 Sep 2013, 10:19 AM Reply Like
  • I hope the GE engines are made better than their appliances !
    29 Sep 2013, 10:29 AM Reply Like
  • Yes!! I just got a replacement dishwasher and the bottom rack isn't even wide enough to roll back in without one side falling in the bottom!!

     

    How stupid can you be?!?! The rack won't even roll back in smoothly?!?!

     

    Unbelievable.
    30 Sep 2013, 02:19 AM Reply Like
  • Think I read Pratt and Whitney getting out of jet engine business.
    29 Sep 2013, 11:39 PM Reply Like
  • Tdemyer: You must the victim of prank journalism--Pratt and Whitney is the exclusive supplier of jet engines for the F-35 joint strike fighter in all its 3 variants. The Department of Defense projects a total of more than 2300 F-35's being procured for over the next 3 decades for the US Air Force, fellow NATO members nations and other allies including Israel. Pratt and Whitney is here to stay.
    30 Sep 2013, 12:53 AM Reply Like
  • How much would you say the GEnx 1B70 costs?
    20 Mar, 06:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)