PARIS, France - In a transaction agreement signed today at the Paris Air Show, GE Engine Services, Inc., and LOT Polish Airlines have agreed to the formation of an aircraft engine maintenance and repair joint venture at the Warsaw, Poland, airport. Closing is expected later this year, following execution of certain operating agreements and receipt of certain regulatory and operating licenses and approvals.
The new maintenance venture, to be called Central European Engine Services, Sp. z.o.o., will initially service the CFM56-3 engines of LOT Polish Airlines, and later, the engines of other airline customers in the region and worldwide.
"We are pleased to join LOT in this engine maintenance endeavor, the first of its kind in eastern Europe," said Bill Vareschi, president and chief executive officer of GE Engine Services. "LOT was one of the first carriers in the region to operate CFM56 engines and has since flown more CFM56 hours than any of the others. The record of CFM56 operation with LOT is outstanding."
Said Jan Litwinski, president of LOT Polish Airlines, "We look forward to joining with GE Engine Services because of its expertise in overhaul and repair processes, its management skills, and its excellence in international marketing. This engine maintenance agreement can lead to long-term cooperation between GE and LOT, which is very important to LOT and to Poland."
With headquarters in Cincinnati, GE Engine Services provides comprehensive overhaul, repair, and support of aircraft engines, components, and accessories of GE aircraft engines and the engines of CFM International, the 50/50 joint company of Snecma of France and General Electric Company of the United States, as well as engines produced by other manufacturers.
GE Engine Services anticipates revenues of nearly $5.5 billion dollars in 1999, following record revenues of almost $5 billion in 1998, $3 billion in 1997, and $2.3 billion in 1996, the first year GE Engine Services was structured in its present form.
GE Engine Services includes a global network of overhaul and repair "Centers of Excellence" located in: Xiamen, China; Nantgarw, Wales; Singapore; Kuala Lumpur, Malaysia; Ontario, California; Strother Field, near Arkansas City, Kansas; Miami, Florida; Dallas/Fort worth, Texas; Prestwick, Scotland; Petropolis, Brazil; Rio de Janeiro, Brazil; and, Cincinnati, Ohio; and also at Garrett Aviation Services' six Total Aircraft ServiceSM centers.
Additionally, GE Engine Services provides global on wing engine support from eight GE On Wing SupportSM centers located in England, China, Malaysia and the U.S., with more than 10 sites planned by 2000.