GE has been winning big lately, with its stock surging for nine straight weeks, topped by a six-year high following its recent investor day presentation. And now the company has racked up another win. It recently announced that its GE Aerospace spin-off, along with its partner Safran Aircraft Engines, Safran is an Aerospace Defense conglomerate based in France and founded in 2005. The partnership has inked a deal to provide and maintain LEAP-1b engines for American Airlines’ entire 737 MAX fleet.
What Is CFM?
The agreement is officially between American Airlines and CFM International. CFM is the name of GE Aerospace and Safran’s 50-50 joint venture. The company has delivered more than 39,000 jet engines to over 600 operators worldwide, which have accumulated over 1 billion flight hours combined.
The LEAP-1b is a high-bypass turbofan engine specially designed for Boeing’s MAX series narrow body jets. American Airlines already has 52 MAX 8s, with over 100 MAX 10s on order. Over the course of the 20-year contract, CFM is projected to provide and/or service more than 400 engines for American.
Time to Buy into Safran and GE Aero?
With all the buzz about this deal, investors and analysts alike are pondering whether right now is the right time to jump into the fray. When weighing this decision, it would be prudent to remember that Safran is one of the biggest aerospace and defense companies in Europe, and its stock has been rising fairly steadily since the pandemic. Even the war in Ukraine has not slowed its steady and sustained growth.
Further, GE has been riding an incredible high, but if you want GE Aerospace stock specifically, you’ll have to wait a little longer. GE is officially splitting into three companies on April 2nd, at which point GE Aerospace will be its own entity. On the other hand, if you purchase GE common stock now, you’ll be ready to take advantage of the stock split when the company breakup is complete.
Subscribe to our SMS alerts for up-to-the-minute stock alerts.
Did you find this insightful?
Bad
Just Okay
Amazing