General Electric Company (NYSE:GE) has a won a deal of worth $2 billion and a contract of five years of supplying helicopter engines to the Taiwan government. According to the Defense Department, the contract will also involve other responsibilities like supporting several US military services. The contract will run up to Dec 31, 2020.
As a part of the contract, the company will have to work upon T700, 701D and T700 401C engines that are used to provide power to the popular Sikorsky Aircraft’s Black Hawk helicopters. The US government is currently using these helicopters. The United Technologies Corp unit released the information, said the Pentagon.
Contract to Improve Revenues from Aviation Segment for GE
This is a very positive development, which is sure to encourage the operations of GE, especially following the threat of its employees to leave their jobs just couple of days back. The working locations of the operation are yet to be disclosed, but the overall working is sure to take place according to the details in the order. According to the Pentagon, this contract is expected to increase the revenues of the GE through aviation segment.
With the whole world echoing the spirit of peace, most of the countries have decided to cut down their military and defense related investments. This is one of the reasons there has been a massive decline in the demand for the military aircrafts owing to which the aviation segment of GE was badly affected. Less demand for aircraft had also lowered the demand for jet engines.
Although the aviation segment of General Electric has been generating its revenues through commercial aircraft engines, it was looking for bigger deals. The new deal with the government of Taiwan surely is going to give a boost to the company’s working and revenue. Moreover, General Electric Company (NYSE:GE) is also trying to make up the loss by supplying the smaller commercial aircrafts, which are now in huge demand.