Enlarge imageLONDON (Reuters) - British Airways, Europe’s third-largest airline, said on Thursday it had agreed a new engine maintenance contract with General Electric Co. worth 1.5 billion pounds over 10 years.
Under the deal, GE would be responsible for the maintenance and repair of engines across the airline’s fleet of Boeing and Airbus aircraft from its facility in Wales, BA said in a statement.
The agreement, which replaces an existing contract with GE due to expire at the end of this year, follows a two-year review by BA of its engine maintenance arrangements.
"GE was selected after an online competitive bidding process," BA said, declining to name the losing bidders.
GE is expected to carry out more than 800 overhauls or repairs on the airline’s fleet of RB211 and CFM56 engines at its maintenance facility in Wales over the next decade.
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The Rolls Royce RB211 engines power BA’s 57 Boeing 747 and 21 Boeing 767 aircraft.
The CFM56 engines, produced by CFM International, power the
carrier’s 32 Boeing 737s and ten of its 26 Airbus A320
aircraft. CFM is a joint venture between GE and French engine
maker Snecma
BA shares were 1.2 percent firmer at 338-1/4 pence by 3:26 p.m.
