What's Happening?
General Electric (GE) has solidified its dominance in the Boeing 787 market, with its GEnx engines powering two-thirds of the in-service fleet. This development comes as Boeing nears the delivery of its 1,300th 787 aircraft. The split between GE and Rolls-Royce
engines is 67:33, favoring GE, which is also reflected in the monthly flight hour accumulation. Rolls-Royce's Trent 1000 engines have faced durability issues since their entry into service, leading to a decline in new orders. Major airlines like British Airways have shifted to GE engines for future deliveries due to these issues. Despite a recent order from LATAM for three Rolls-powered 787s, GE continues to dominate with over 1,000 orders for 787 aircraft. The current order book shows only 36 Rolls-powered 787s remaining, with over 100 orders yet to select an engine.
Why It's Important?
The dominance of GE in the Boeing 787 market has significant implications for the aviation industry. GE's stronghold on the market could lead to increased influence over pricing and supply chain dynamics. Airlines opting for GE engines may benefit from improved reliability and reduced maintenance costs, enhancing operational efficiency. Conversely, Rolls-Royce's challenges with the Trent 1000 could impact its market share and financial performance. The shift in engine preference also reflects broader industry trends towards reliability and cost-effectiveness, influencing future aircraft engine developments and airline procurement strategies.
What's Next?
As GE continues to expand its market share, it is likely to focus on further enhancing the performance and reliability of its GEnx engines. Rolls-Royce may need to address the durability issues of the Trent 1000 to regain market confidence and secure future orders. The remaining orders without engine selection present an opportunity for both companies to compete for new business. Airlines will continue to evaluate engine performance and cost-effectiveness in their procurement decisions, potentially influencing future market dynamics.
