Rolls Royce, Seimens - >>> This Jet Engine Giant Accelerates Electric, Hybrid Propulsion Unit
Investor's Business Daily
by APARNA NARAYANAN4
Siemens (SIEGY) agreed to sell its electric aircraft-propulsion business to Rolls-Royce, the U.K.-based rival to General Electric (GE) and United Technologies (UTX) in jet engines. Siemens stock, GE stock and United Technologies stock all rose.
Rolls-Royce and Siemens eAircraft were already working with plane maker Airbus (EADSY) on a hybrid-electric propulsion system, the E-Fan X, to power a large jet.
The acquisition is set to close in late 2019. Financial terms were not disclosed.
"We have already made significant strides in realizing our strategy of 'championing electrification' and this move will accelerate our ambitions in aerospace by adding vital skills and technology to our portfolio," Rob Watson, director of Rolls-Royce Electrical, said. "It brings us increased scale and additional expertise as we develop a product range of hybrid power and propulsion systems."
Electric planes took center stage at this week's Paris Air Show. Airbus told the Associated Press Monday it hopes to sell hybrid or electric planes by 2035, aligning with earlier reports. United Technologies also told CNBC it seeks to fly a hybrid-electric commuter aircraft within three years, with the platform eventually benefiting both Airbus and Boeing (BA) jet.
And Israeli startup Eviation
snagged the first customer for its electric planes — Cape Air, a regional U.S airline.
Shares of Siemens gained 2.3% on the stock market today to rise above the 50-day line. GE stock rose 3.7% and United Technologies stock gained 1.9%.
GE told IBD its aviation unit has booked $50 billion in orders so far this week at the Paris Air Show. That included a $23.1 billion Air Asia order for 200 Leap-1a engines to power 100 Airbus A321neos, which was booked Tuesday after being announced in July 2016.
It also included an aircraft-leasing deal for an undisclosed amount with Amazon Air, as Amazon (AMZN) Air builds out its delivery and transport network.
Amazon Air will add 15 Boeing 737 cargo planes to the five it already leases from GE's aviation financing and leasing arm. By 2021, Amazon Air will have 70 aircraft in its fleet, Amazon said in a release.
GE also booked $20 billion from Indigo for Leap-1a engines to power 280 Airbus planes, the largest single engine order in history.
Indigo, India's largest airline, reportedly moved the order to GE joint venture CFM International after United Tech's Pratt & Whitney engines developed issues.
In 2017, GE booked roughly $31 billion at the Paris Air Show.