GECAS introduces new Component Management Service for Airlines

11 August 2004

STAMFORD, Conn., August 11 2004 - GE Commercial Aviation Services (GECAS), a unit of GE Commercial Finance, today announced a new aircraft component management service to help airlines finance and manage their rotable and repairable spare parts. The service reduces capital investment, lowers costs and improves on-time performance.

To provide the new service, GECAS purchased LogisTechs, a privately held aviation inventory management firm founded in 1999 in Scottsdale, Arizona. GECAS made a minority equity investment in LogisTechs in 2002. Proprietary LogisTechsTM software is currently used to optimize inventory for airlines such as Mesa Air Group, Pinnacle Airlines, WestJet, Horizon Air, and America West.

“Our component management service is a comprehensive solution for an airline’s spare parts inventory that both reduces huge capital investment and inventory costs,” said Norman C.T. Liu, executive vice president, commercial operations for GECAS.

Mesa Air Group has signed on as the first customer of the new financing and management service, covering the spare parts for its Bombardier CRJ200 fleet.

Under the Aircraft Component Management program, GECAS can provide financing for the airline’s spare parts inventory, which can be optimized using LogisTechsTM technology to ensure the right parts are in the right locations at the right time, based on historical and predictive data from the airline. GECAS also provides a performance guarantee as part of the management, planning and logistics service. A third-party handles the parts repair process or airlines can oversee the repair process in-house.

The service is available for Airbus A320, Boeing 737NG, Bombardier CRJ, and Embraer ERJ aircraft types. The spare parts inventory is maintained at airline line stations where needed. Airline customers pay a predictable, fixed cost per flight-hour for a guaranteed service level. Annual cost savings are typically in the millions of dollars and service-level improvements are typically 10-15 percent higher.

GECAS is a leading provider of fleet, financing and productivity solutions to the global aviation industry. With long-standing customer relationships with more than 200 airlines in some 60 countries, GECAS has a fleet of some 1,200 owned aircraft and manages nearly 300 for others. GECAS offers a full range of aircraft fleet and financing solutions, including operating leases, finance leases and secured debt financing; engine leasing through its Engine Leasing unit; and pilot training through its Aviation Training unit. GECAS is headquartered in Stamford, Conn., and has offices in 14 locations worldwide.

GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over US$220 billion and is headquartered in Stamford, Connecticut, USA. General Electric (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better.

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