General Electric’s board of directors has approved a plan to spin off energy business Vernova on 2 April, setting up GE to become a standalone aviation company named GE Aerospace on that date.
The move will mark completion of GE’s plan, revealed in November 2021, to spin off two of its three core businesses and to move forward focused entirely on aerospace products.
GE’s board approval “clears the way for the historic launches of GE Vernova and GE Aerospace… with GE Vernova positioned to lead the energy transition and GE Aerospace set up to define flight for today, tomorrow and the future”, GE chief executive Larry Culp said on 29 February. “We all are excited about the opportunity and the responsibility ahead of us.”
“Following completion of the planned spin-off, GE will operate as GE Aerospace,” the company adds.
GE completed the first spin off – of its healthcare division, now an independent publicly traded company called GE HealthCare – in January 2023. Energy business Vernova is also to become a standalone publicly traded firm.
As part of its plans for three-way split, GE already changed the name of its engine-manufacturing arm from GE Aviation to GE Aerospace, of which Culp is also CEO.
GE says it intends to reveal more details on 7 March during an investor meeting about its plans for GE Aerospace as a standalone business.
GE Aerospace produces a range of aircraft engines, including, through its CFM International joint venture with Safran Aircraft Engines, Leap turbofans, which power Boeing 737 Max and Airbus A320neo-family jets. It also produces turbofans for widebody jets – including the in-development 777-9’s GE9X – turboprops, helicopter turboshafts and military-jet powerplants.
