General Electric has offered Boeing substantial financing to assist in the development of the 777-200X and 777-300X in exchange for an exclusive position to power the aircraft with a development of its GE90.
The US engine builder, offering the GE90-11XB, is believed to have made the offer as part of a wider package, including CF6 engines for the Boeing 767-400ER and the joint venture GP7000, being developed with Pratt & Whitney, for the 747X. GE declines to comment on details of its bid, but the proposal is understood to include a substantial offer of financing to assist development of the 777X in return for exclusivity.
The bid comes as the race to power the ultra-long-range variants enters a crucial phase. Boeing has received final bids from all three major engine makers, GE, P&W and Rolls-Royce, but says further negotiations are under way. A decision is "some way off". All three have proposed 110,000-115,000lb thrust (490-510kN) engines to power the 777-200X and its stretched stablemate, the -300X. The latter is expected to be the first of the two 777 variants to be developed.
GE Aircraft Engines president and chief executive James McNerney says: "We are convinced we have the best engine for that application and we feel the business case requires an exclusive agreement. It is based on the development costs we and Boeing would undergo, but it is a very costly application for both."
The estimated market size is growing, particularly since the improved performance of the 777-300X with the bigger engines is virtually equal to that of the 747-400. Latest Boeing figures suggest the combined -200X/300X market could be more than 600 aircraft, three times original estimates. McNerney confirms GE will not offer the growth GE90 should it not be selected on an exclusive basis.
P&W's new president Louis Chenevert says exclusivity would be preferable, but is not essential. "If it is not exclusive, it will make the business case significantly more difficult. I don't want to force exclusivity, and then lose it to someone else". P&W has proposed what amounts to a new engine with a 3.2m (126in)-diameter fan, using the major elements of the PW4000 as the technical base.
R-R continues to support a multi-source engine selection, a position which chief executive John Rose says is being upheld by many airlines. Several are applying "moderate pressure" on Boeing not to go for the sole-source option, he says.
Boeing says the higher power gives the -300X a range of 13,400km (7,250nm) and the same seat-kilometre costs as the 747-400, but with 17% lower trip costs. It claims the -200X will have roughly 6.5% lower relative trip costs and up to 14% lower seat-kilometre costs than the rival Airbus A340-500. The company says the 300X will have around a 5% lower trip cost and up to 15% lower seat kilometre costs than the A340-600.
Source: Flight International
