In what has turned out to be a busy week for GE Capital, comes news that GE Capital Aviation Services Limited (GECAS), is to open new offices in Accra, Ghana and Cape Town, South Africa to expand and strengthen relationships with its airline customers in Africa.

The Accra office will serve airline customers in West and Central Africa. The Cape Town office will focus on customers in southeastern Africa. North Africa will continue to be covered by GECAS’ Dubai office.

Norman C.T. Liu, president and CEO of GECAS explained: “Africa offers an excellent growth opportunity for GECAS given the breadth of our fleet and product offerings. The region has a huge emerging consumer base, tremendous natural resources, and deepening global trade relationships.”

The offices will report into Jonty Nel, who is based in Dubai and oversees the Middle East, Africa and CIS region. “We have over $2.5bn of aircraft in Africa in 14 countries,” said Nel. “The new offices enable us to be closer to our customers and will allow us to expand into many more countries.”

Liu is a 22-year veteran of GE Capital with some 14 years as GECAS and has steered the company through the current recession.

He explained recently: “The GECAS fleet is positioned well in this downturn. Both our new order skyline and roll-offs are well placed. So far, we’ve utilized our global distribution network to place out repos, and have kept our AOGs [aircraft on ground] in the single digits. Our fleet management capabilities and the strong financial footing of our parent have enabled us to grow even during these tough times."

Adding: “GECAS currently has 1,530 aircraft in its portfolio, with an average aircraft age of seven years, versus a world fleet average of 11. The current fleet is made up of 70% narrow-body, 21% wide-body and nine per cent cargo aircraft.”

GECAS also announced three aircraft leasing deals:  four Boeing 737-800s leased to South African Airways; an Airbus A320 leased to Senegal Airlines, and a lease with GECAS financing of one Boeing 737-400 aircraft to Buraq Airlines in Libya.

At the same time GE announced a series of deals and investments with major players in the Chinese commercial aviation sector at the country’s biggest aviation exhibition held in Zhuhai last week.

CFM International, a 50/50 joint venture between GE and French company Snecma (Safran group), secured four deals for engines and services with a total value of $2.1bn with three leading Chinese carriers, namely Air China, China Eastern Airlines and the HNA Group. These consist of:

­• 20 CFM56-5B engines from Air China, the country’s flagship carrier;

­• 30 CFM56-5B engines from China Eastern Airlines, the country’s second-largest carrier by fleet size;

­• 42 CFM56-5B engines to power new A320s under HNA Group, the country’s fourth-largest airline group, with delivery due to begin in 2012; and

­• A long-term service agreement on maintenance of the CFM56-5B-powered HNA Group A320 fleet.

Both the Air China and China Eastern deals were first announced at the Farnborough Air Show, UK, earlier this year.

Also at the Zhuhai Air Show, Shanghai-based Commercial Aircraft Corporation of China Limited (COMAC) received one hundred launch orders for their C919 aircraft, China’s homegrown narrow-body passenger jet. As part of these orders, GECAS signed a letter of intent to purchase up to 10 of the C919 aircraft. The 150-seat C919, still under development, is expected to enter commercial service in 2016. CFM International has already signed up with COMAC as the sole foreign propulsion system supplier including engine.

COMAC also signed an agreement with AVIC International for 100 ARJ21-700 regional aircraft powered by GE's CF34-10A engine. The parties will jointly market and sell these regional jets internationally.

Eventful week

GE Aviation capped the eventful week in Zhuhai with a Memorandum of Understanding with HNA Group to form a joint venture in the coastal city of Tianjin to provide maintenance, repair and overhaul services for GE’s CF34 engines.

John Rice, GE vice chairman and head of international operations, said: “China is the fastest-growing aviation market in the world. These latest investments and agreements ensure GE’s long-term participation in China’s air transportation boom.”

Mark Norbom, president & CEO of GE China, said: “The agreements signed this week demonstrate our consistent, long-term commitment to our airline partners in China. The decision to add C919s to the GECAS fleet shows our confidence in the commercial prospects for the aircraft and strengthens the relationship with our Chinese partners in the aviation space.”