AVIATION

Aviation delivered strong performance, closing its 100th year of operation with over $270 billion in backlog and an installed base of more than 64,000 (2) commercial and military engines. This fleet is poised for continued growth; for example, in our commercial business, nearly 70 percent of the CFM56 fleet has had one or fewer shop visits. As these engines fly for decades to come, they will continue to produce predictable revenue.

That said, 2019 wasn’t without its challenges. Our team worked diligently to support our customers following the grounding of the Boeing 737 MAX, never wavering in their commitment to safety while navigating near-term industry disruption. LEAP continues to be a strong engine program for us, and we delivered 1,736 LEAP engines to Airbus and Boeing platforms in the year.

Aviation’s long-term end-market fundamentals remain attractive, and the team is introducing advanced technologies in growing commercial and military markets. For example, in commercial markets, Aviation’s newly certified Passport™ engine powered Bombardier’s record-breaking flight between Sydney and Detroit in October, and the GE9X™—the world’s largest, most powerful jet engine—is on track for certification in 2020. In military, Aviation’s new T901 was selected for the U.S. Army’s Improved Turbine Engine Program to power its next-generation Apache & Black Hawk helicopters. Finally, just like in Springdale and Batesville, teams across Aviation are continuously identifying new opportunities to improve their operations.

(2) Including GE and its joint venture partners

Why Shares of General Electric Are Falling Today

Lou Whiteman, The Motley Fool • May 4, 2020

GE’s stock dives after Warren Buffett’s negative outlook, ‘permanent’ job cuts at Aviation

Tomi Kilgore, MarketWatch • May 4, 2020

GE’s stock dives after Warren Buffett’s negative outlook, ‘permanent’ job cuts at Aviation

Published: May 4, 2020 at 2:20 p.m. ET
By Tomi Kilgore

Coronavirus pandemic to hurt aircraft business ‘into 2021 and beyond’; 25% of Aviation employees to lose jobs this year

Shares of General Electric Co. dropped Monday, after a downbeat outlook from billionaire investor Warren Buffett, and as the company’s Aviation business said it would cut as many as 13,000 jobs this year as the effects of the coronavirus pandemic are expected to continue for some time.

In Berkshire Hathaway Inc.’s BRK.B, -2.65% BRK.A, -2.77% virtual shareholder meeting over the weekend, Buffett said the airline business had changed “in a major way” by the pandemic, adding that he might not fly commercial going forward. As a result, Buffett indicated he sold off his airline holdings, acknowledging that he was “wrong” about the business.

Buffett says 'never again' to airline business
ANDREA ROTHMAN
PARIS
ANDREA ROTHMAN BLOOMBERG NEWS
PUBLISHED MARCH 29, 2001
UPDATED APRIL 10, 2018

PUBLISHED MARCH 29, 2001
This article was published more than 10 years ago. Some information in it may no longer be current.

Billionaire investor Warren Buffett said he's sworn off investing in airline stocks since his $358-million (U.S.) "mistake" in US Airways Group Inc. ... "Now if I get the urge to invest in airlines, I call an 800 number, and I say: 'Hello, my name is Warren, and I'm an air-o-holic,' " he said.

The 70-year-old chairman and chief executive officer of Berkshire Hathaway Inc. said in 1996 that the deal was a "mistake." Berkshire acquired the stake in the form of preferred stock for $358-million in 1989. It has since sold the stake, later converted to common shares, without saying whether it made money.

Mr. Buffett told journalists aboard a London-to-Paris flight on Tuesday that in the last 20 years, 130 U.S. airlines have gone broke. "It's unbelievable," he said, offering to dig out a list of the failed companies he keeps back in his office in Omaha, Neb., to show doubters.

"The airline business from the time of Wilbur and Orville Wright through 1991 made zero money, net," he said. "If capitalists had been present at Kitty Hawk when the Wright brothers' plane first took off, they should have shot it down."

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