Thai Airways Swaps Rolls-Royce For General Electric In Billion-Dollar Order For New Fleet
Portfolio Pulse from Benzinga Neuro
Thai Airways International Pcl has chosen General Electric Co. over Rolls-Royce Holdings Plc for its next-generation widebody engines in a deal involving 45 Boeing Co. aircraft. This decision, influenced by previous criticisms of Rolls-Royce's pricing, marks a significant shift for Thai Airways and represents a notable loss for Rolls-Royce, which has been aiming to improve profitability. The engines will power Boeing aircraft to be added to Thai Airways' fleet from 2027 to 2033, a move that does not impact the airline's debt rehabilitation plans. This order is crucial for GE, especially ahead of its GE Aerospace and GE Vernova Spin-Off, and provides a boost to Boeing amidst its recent challenges.
February 14, 2024 | 1:49 pm
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POSITIVE IMPACT
General Electric Co. secures a significant engine order from Thai Airways for 45 Boeing aircraft, marking a pivotal moment for GE ahead of its GE Aerospace and GE Vernova Spin-Off.
The deal with Thai Airways is a major win for GE, likely to positively influence investor sentiment and stock price in the short term, especially given the timing before its spin-off.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Thai Airways International Pcl's decision to switch to GE engines for its Boeing aircraft order reflects strategic procurement and does not affect its debt rehabilitation plans.
While the decision is strategic for Thai Airways, focusing on procurement, it's neutral in terms of immediate financial impact due to its ongoing debt rehabilitation process.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Rolls-Royce Holdings Plc faces a setback as Thai Airways selects GE for its engine order, reflecting challenges in Rolls-Royce's strategy to improve profitability.
This loss to GE represents a significant challenge for Rolls-Royce, likely negatively impacting investor confidence and the stock price in the short term due to its strategy implications.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90