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GE Aerospace says GE9X mid-seal problem will not delay Boeing 777X entry into service

GE Aerospace (GE) CFO Rahul Ghai said Thursday he believes a durability issue with the GE9X engine's mid-seal will not delay next year's planned entry into service for the Boeing (BA) 777X aircraft.

Ghai told a Morgan Stanley conference that GE (GE) has "a huge degree of confidence" in the redesigned seal after testing it internally and had incorporated the design into engines now being produced.

After testing showed the mid-seal, a part connecting the front and rear sections of the engine, was not as durable as GE (GE) had expected, the company redesigned the part and began shipping GE9X engines fitted with the new seal to Boeing (BA) in Q3, Ghai said, adding that Federal Aviation Administration certification of the redesigned part is expected in the next few months.

The CFO also said he does not see broad vertical integration as the answer to aerospace supply chain constraints, after GE (GE) agreed to buy castings supplier Consolidated Precision Products for $11.75B.

The company announced the CPP deal last week as it seeks to expand supplies of precision-cast metal parts used in jet engines, including turbine blades and vanes.