GE Engine Services-Dallas Inc., an
affiliate of GE Engine Services Inc., and America West Airlines Inc.
(NYSE: AWA) announced that America West has awarded to GE a multimillion-
dollar, long-term contract to maintain the Airline`s CFM56-3, V2500A1 and
JT8D-15 aircraft engines.
America West`s CFM56-3 and V2500A1 engines, which power the Airline`s
Boeing 737-300 and Airbus Industrie A320 aircraft, will be maintained by GE as
part of a 10-year Rate Per Engine Hour (RPEH)(SM) contract. The JT8D-15
engines, which power America West`s Boeing 737-200 aircraft, will be covered
under an exclusive five-year firm, five-year renewal option, RPEH(SM)
agreement with GE. Work on America West`s engines will be done at GE`s
Strother facility, near Arkansas City, Kan., and GE`s Dallas facility, a
former Greenwich Air Services site.
“GE Engine Services continually expands its global network of resources in
order to provide efficient, cost-effective maintenance services,” said Bill
Vareschi, president of GE Engine Services Inc. “We are pleased to have the
opportunity to provide this value to America West.”
“This contract provides engine maintenance based on a flat rate per engine
flight hour offering significant savings in operating expenses for America
West,” said Ron Aramini, America West Airlines` senior vice president,
operations. “We`re pleased to be working with GE Engine Services. Its
expertise and strong service network, as well as its commitment to value, are
consistent with our commitment to provide a safe, quality product and maintain
The contract extends significant operational and economic benefits to
America West including vendor assumption of maintenance cost risks, incentives
for improved on-wing performance and reductions in the cost of overhaul work.
In 1997, GE Engine Services received orders worth more than $3.6 billion,
representing a $1.0 billion, or 38 percent, order increase over 1996. Also in
1997, GE Engine Services won multiyear maintenance and overhaul contracts
worth more than $6 billion, representing an increase of more than 45 percent
America West Airlines, the nation`s ninth largest carrier, serves more
than 90 destinations in the U.S., Canada and Mexico. America West Airlines is
a wholly owned subsidiary of America West Holdings Corporation, an aviation
and travel services company with annual sales of $1.9 billion.
Cincinnati-based GE Engine Services provides comprehensive overhaul and
repair of aircraft engines, components and accessories of GE Aircraft Engines
and CFM International, the 50/50 joint company of Scene of France and General
Electric Company of the United States, as well as engines produced by other
manufacturers. GE Engine Services has overhaul and repair facilities located
at Nantgarw, Wales; Singapore; Ontario, California; Strother Field, near
Arkansas City, Kansas; Miami, Florida; Fort Worth/Dallas, Texas; Prestwick,
Scotland; Petropolis, Brazil; Cincinnati, Ohio, and engine support centers at
six Garrett Aviation Services locations.
(SM) Rate Per Engine Hour and RPEH are service marks of GE Engine Services
- Miami Inc., formerly known as Greenwich Air Services Inc.