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JAL Signs $140 Million Maintenance Agreement With GE

July 13, 2000

EVENDALE, Ohio - Japan Airlines (JAL) has signed a 10-year maintenance and overhaul agreement with GE Engine Services valued at more than $140 million.The agreement calls for GE Engine Services Malaysia Sdn Bhd. to maintain and overhaul the CFM56-3C1 engines that power a fleet of 737-400s operated by a JAL subsidiary, Japan TransOcean Air (JTA). JTA is a domestic carrier, based in Okinawa, Japan, that operates a fleet of 19 aircraft, primarily 737-400s. The parent company, Japan Air Lines, is one of the world's leading international airlines, with a fleet of 138 wide-body aircraft. The airline recently placed orders for the new longer range Boeing 777-300 aircraft powered by GE90-115B engines. GE Engine Services Malaysia (GEESM) is a joint venture between General Electric Company and Malaysian Airline System Bhd., established as a GE "Center of Excellence" for the repair and overhaul of CFM56-3 and PW4000 engines. Serving several airlines in the Asia-Pacific region, GEESM is situated within the engineering complex at Sultan Abdul Aziz Shah Airport in Subang. The advanced, 200,000-square-foot engine shop employs more than 300 people and is driven by GE's rigorous Six Sigma quality process. The contract with JAL represents one of GEESM's largest maintenance and overhaul agreements and is the first with a Japanese airline. "This significant contract with JAL further establishes GEESM as a leading repair and overhaul center for aircraft engines in Asia," said Peter Jerin, the managing director of GEESM. "We are committed to providing JAL our industry-leading service and support. We are most gratified with the confidence JAL has placed in us." GE's Malaysian operation is part of the global network of GE Engine Services, the world's leading integrated engine maintenance resource, with a backlog of long-term engine service agreements valued at more than $16 billion. Headquartered in Cincinnati, Ohio, GE Engine Services provides comprehensive overhaul and repair of engines produced by CFM International, the 50/50 joint company of Snecma of France and General Electric; as well as engine components and engine and aircraft accessories. In addition to GEESM, the company's overhaul and repair shops include: Nantgarw, Wales; Ontario, California; Strother Field, near Arkansas City, Kansas; Miami, Florida; Dallas/Fort Worth, Texas; McAllen, Texas; Terre Haute, Indiana; Prestwick, Scotland; Petropolis, Brazil; Rio de Janeiro, Brazil; Xiamen, China; Taipei, Taiwan; Singapore; Yokoshiba, Japan; and Cincinnati, Ohio, and Garrett Aviation Services' Total Aircraft Service SM Centers.