See tutorial regarding confidentiality disclosures. Delete if not needed. Imagination at work.

Engine Life Cycle Management Anil Mathur Mature Fleet Solutions November 5th , 2015

This is GE Aviation 1 Imagination at work.

See tutorial regarding confidentiality disclosures. Delete if not needed.

Engine Life Cycle Management …….

Highly complex and dynamic decision process

Retirement Deliveries

Fle

et

GE Offerings: 1. OnPoint

2. T&M Overhaul

3. Component Repair

Risk transfer Asset productivity Asset Value Extraction Customer Needs:

1. OnPoint 2. T&M Overhaul 3. Component Repair

4. Workscope Mgmt

5. Upgrades

6. Material Programs

7. Used Material

1. OnPoint 2. T&M Overhaul 3. Component Repair 4. Workscope Mgmt 5. Upgrades 6. Material Programs 7. Used Material

8. Green Time Engines

9. Lease Engines

10. Engine Exchange

11. Part Out/Consignment

EIS Growth Stable Retire

See tutorial regarding confidentiality disclosures. Delete if not needed.

Investing in Product Improvements: Lowering customer ownership and operating costs

CFM is a 50/50 JV between GE and Snecma

GE90-94 EIS: 1995

Number of Fuel Burn Time on Wing upgrades Improvement Increase 8 8% 2X

8 3% 3X

5 2% 2X

CF6-80C2 EIS: 1988

CFM56 EIS: 1984

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See tutorial regarding confidentiality disclosures. Delete if not needed.

Investing in Component Repair: Lowers shop visit cost thru scrap rate reduction

Why We Develop… ..

• Lowers COO

• Enabler of used material

Why Use GE … ..

• System tested and validated to comply

with OEM engine maintenance manual

• GE offers the most repairs … 12,000+

• Industry leading warranties – Extended warranty also available

• Competitive TAT

• ~1,000 new repairs developed annually

Repairs savings examples

-5/-7 Comb Liner Weld and resize repair

Weld and Resize Multi-hole Outer Liner

Repairs developed Yield

80% cost savings

-7BE HPTB Repairs developed

Chem Strip

Recreate blade tip

Robotic Polish

Advanced Coatings

Yield

80% cost savings

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See tutorial regarding confidentiality disclosures. Delete if not needed.

Used Serviceable Material – GE Aviation used material & CFM Materials

• Availability as retirement rates rise

• Customers preference on final engine SV, and lease returns

• Enables lower cost ‘shorter’ builds at end of life … match ownership horizon

• GE Aviation used material and CFM Materials

− Selling USM for 20+ years

− Best availability

− Global distribution centers

− Highest quality standards

− 100% TRUEngine qualified

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Workscoping: Determines asset value & performance

Optimize for: • Time On Wing

• Cost per event

• Reliability

• Fuel Efficiency

• Asset value

GE’s expertise provides optimal solution with ...

• Global fleet experience

• New, high tech repairs

• Best availability of USM

Used material

LLP savings

Repair & exposure

SV cost

Balance maintenance cost savings …

OEM used

material

SBs & upgrades

LLP build stand

Engine value

… while retaining residual value

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See tutorial regarding confidentiality disclosures. Delete if not needed.

TRUEngine: Maximizes residual value, performance & support

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Designates the engine is OEM configuration

• Maximizes engine performance

• Best reliability

• Expedited product support

• As much as 50% higher residual value

~12,000+ engines enrolled

Engine Residual Value, 3rd Appraiser

PMA/DER OEM

OEM*

TRUEngine cores >2X greater value

Non-OEM*

TRUEngine LLP … for buyers of USM

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Rigorous records check … a necessity Investigation of broker record falsification

Rigorous LLP records audit Optimizes OEM support Maximizes Residual Value Confirming configuration since birth

See tutorial regarding confidentiality disclosures. Delete if not needed.

Solutions tailored to unique customer needs

OnPointTM

Solutions

Optimizing lifecycle cost via flexibility

• Time-on-wing and cost-per-event risk transfer

• Customized structure and payment options

• Program management and analytics

T&M Overhaul

Optimized cost per shop visit

• Expert workscoping based on customer goals

• OEM engineering combined with experience and analytics

• Performance guarantees

Material Solutions

Best performance, maximum choice

• OEM precision, maximum engine performance.

• Best availability of Used Serviceable Material

• Develop and industrialize more repairs than anyone

Mature Solutions

Broadest expertise & range of offerings

• Engine exchange

• Green time engines

• Lease alternatives

• Thrust/configuration conversions

• Purchase/Lease Back

• End-of-life disposition

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See tutorial regarding confidentiality disclosures. Delete if not needed.

Summary - GE’s Services Promise

1. Operational excellence Keep fleets flying at peak performance

2. Lowest cost of ownership Reducing fuel & maintenance cost

3. Flexibility & choice Customized services for unique needs

4. Highest asset value OEM configuration maximizes performance & support

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See tutorial regarding confidentiality disclosures. Delete if not needed. 10

Thank you for your attention!

For more information: • GEAviation.com/Services

• AviationWeek.com/special-topics-pages/optimizing-engines-through-lifecycle

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