Jet

Honda and General Electric form strategic Alliance in business jet engine market

The HF118 has run more than 1,400 hours, including ground tests and more than 200 hours in flight tests on an existing flying test aircraft. In addition, two HF118 engines have powered Honda’s new experimental compact business jet, the HondaJet, in flight tests that began in December 2003.
The Honda/GE basic agreement includes: joint certification of the HF118, joint marketing activities under both companies’ joint brand with airframe manufacturers, and continued discussions on the business structure under which the two companies will mass produce the engine. Honda and GE have been in discussions for more than a year, and expect to sign a formal definitive agreement later this year.
       
“We have great respect for the technology, design and performance built into Honda’s HF118 engine,” said GE’s Calhoun. “There are tremendous benefits to Honda and GE entering the business jet engine market together. Honda is the world’s leading producer of engines for motorcycles, automobiles and power products with superb technology. We are delighted to form a strategic alliance.”

“This is a great step forward for Honda to enter the aviation business, which has been a dream of the company since its creation,” said Honda’s Fukui. “We aim to commercialize our compact jet engine business by merging mutual strengths: Honda’s HF118 turbofan engine technology, and GE’s technology, sales, and support through a spirit of equal partnership. We are confident in forming an alliance with GE, which is the leading manufacturer in the jet engine industry.”
 
The emergence of smaller, relatively inexpensive business jets, which seat from four to eight passengers, creates the potential for considerable engine sales for future business and personal travel. Honda and GE envision an annual market in the future for approximately 200 or more of these business jets. Small business jet applications include owner operators and fractional owners, as well as potential “air taxi” operations. The “air taxi” business involves micro jets flying passengers on short stops using the vast number of small airports not serviced by major airliners.

Jet engine technology is also driving market change. In the 1990s, GE took its jet engine designs for large airliners to regional jet passenger aircraft, a market previously dominated by propeller-driven, turboprop aircraft. Now, Honda and GE will bring their expertise to a new generation of smaller, lightweight, low cost, and highly efficient turbofan jet engines with the lowest operating costs.
Honda (NYSE: HMC) is one of today’s leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 17 million customers annually.

GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better, from aircraft engines and power generation to financial services, medical imaging, television programming and plastics. GE operates in more than 100 countries and employs more than 315,000 people worldwide.

Honda worldwide website: http://world.honda.com,

media website: http://www.honda.co.jp/PR

GE website: http://www.ge.com

GE aircraft engines business at http://www.geae.com.