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WestJet Signs $850 Million Engine MRO Agreement

Posted on: Wednesday, 17 June 2009, 09:44 CDT

Airline's engine maintenance, repair and overhaul work to be done in Winnipeg

CALGARY, Alberta, June 17 /PRNewswire/ -- WestJet today announced it has signed an exclusive 12-year OnPoint* solution agreement valued at more than $850 million (USD) over the life of the contract with GE Aviation for the maintenance, repair and overhaul of its fleet of CFM56-7(+) engines that power 79 Boeing Next-Generation 737 aircraft.

As part of the agreement, maintenance, repair and overhaul of WestJet's engines will be performed at the StandardAero plant in Winnipeg, which has just undergone a major expansion, resulting in additional employment for Manitobans.

GE Aviation and StandardAero have completed a material and licensing agreement in connection with the WestJet contract. As part of the agreement, GE Aviation will provide material and high-technology component repairs to StandardAero. The material is produced at various GE facilities, including Bromont, Canada, Hooksett, New Hampshire, and Madisonville, Kentucky. StandardAero will become a GE Designated FulFillment Center* for CFM56-7B engines.

"We are excited about working with two global leaders in the field of jet engine systems," said Sean Durfy, President and CEO of WestJet. "Safety is our number one priority, and while we have one of the most modern fleets of Boeing Next-Generation 737 aircraft of any airline in North America, the maintenance, repair and overhaul of our aircraft engines is an integral part of our ongoing safety program."

"GE Aviation is looking forward to working with WestJet and StandardAero on this CFM56-7 OnPoint solution agreement," said Tom Gentile, vice president and general manager of GE Aviation. "The agreement is a perfect example of the flexibility of GE's service offerings and enables WestJet to benefit from GE's OEM material while getting overhaul services from StandardAero, a world class engine overhaul facility that is part of the GE global MRO network."

"Entry into the large-engine MRO market has long been a goal for StandardAero," said Rob Mionis, President and CEO of StandardAero. "WestJet and GE Aviation are great partners and we look forward to continuing to provide them with the superb service and support we are known to deliver."

GE and StandardAero have developed a strong relationship over the years. StandardAero was the first independent repair and overhaul company to become an Authorized CF34* Service Provider and provide MRO service for GE's CF34-1, -3 and -8 engines. StandardAero also provides service support for GE's LM1600 marine gas turbine engines.

This press release contains forward-looking statements, including but not limited to, statements regarding the expected value of maintenance, repair and overhaul services and the anticipated location and provider of such work. However, these forward-looking statements are subject to, and may be affected by, numerous risks and uncertainties, some of which are beyond WestJet's control. WestJet's results may differ materially from those expressed in, or implied by, such statements. Factors that could cause or contribute to these differences include but are not limited to: availability of skilled labour, availability of parts and materials, contractor capacity, general economic conditions, the competitive environment and other factors described in WestJet's public reports and filings. Forward-looking statements are subject to change, and WestJet does not undertake to update, correct or revise any forward-looking statements as a result of any new information, future events or otherwise, except as may be required by applicable law.

About StandardAero

StandardAero, a Dubai Aerospace Enterprise (DAE) company with $1.4 billion in annual revenue, specializes in engine maintenance, repair and overhaul, and nose-to-tail services that include airframe, interior refurbishments and paint for business and general aviation, air transport, and military aircraft. The company, part of the DAE Engineering division, forms a global services network of 12 primary facilities in the U.S., Canada, Europe, Singapore and Australia, with an additional 14 regionally located service and support locations.

About GE Aviation

GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as avionics, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.

About WestJet

WestJet is Canada's leading high-value low-cost airline offering scheduled service throughout its 55-city North American and Caribbean network. Named one of Canada's most admired corporate cultures in 2005, 2006, 2007 and 2008, WestJet pioneered low-cost flying in Canada. WestJet offers increased legroom, leather seats and live seatback television provided by Bell TV on its modern fleet of 79 Boeing Next-Generation 737 aircraft. With future confirmed deliveries for an additional 42 aircraft, bringing its fleet to 121 by 2013, WestJet strives to be the number one choice for travellers.

* OnPoint is a registered service mark, Designated Fulfillment Center is a trademark and CF34 is a registered trademark of General Electric Company.

(+) CFM56-7 engines are a product of CFM International, a 50/50 joint company between Snecma (SAFRAN Group) and General Electric Company.

SOURCE StandardAero

Source: PR Newswire

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