General Electric : The GE Brief – June 25, 2019

June 25, 2019

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In an industry where delays and cancellations can be just a storm away, many airlines are missing all sorts of opportunities to build bridges to customers in ways that increase everyone's satisfaction. But that's changing. At the forefront of that change are GE Aviation and Microsoft, who are teaming up to apply lessons to the airline industry learned from a surprising sector: video games.

It's all in the games: Video game makers use technology to develop ongoing relationships with their players - relying on small transactions to build an emotional connection before leveling up to the big buys. That model has been phenomenally successful in the gaming world, and now GE Aviation and Microsoft are applying similar customer engagement and personalization technology for a more satisfying passenger experience. Behind the scenes, the starting point is GE Aviation's Network Operations product suite, which compiles multiple data streams to help airlines manage flight disruptions. From the customer standpoint, though, it starts at the ticket counter where the flight has just been delayed overnight - and where now customers need to get meal and hotel vouchers, retrieve bags, find a seat on the next flight out, and so on. Could technology help folks jump a few hurdles here? 'We want to automate this so you don't have to stand in line,' said GE Aviation's Karen Miller. 'And maybe we'll know some of your preferences, so while you wait, we can make customized offers.'

Learn more here about how video games can help airlines supercharge the whole flying experience.

Steve Winoker, GE's vice president of investor relations, had a busy week last week. He joined colleagues at the Paris Air Show, where GE and CFM International, the company's 50-50 joint venture with Safran Aircraft Engines, racked up a cool $55 billion in new deals, including the single largest jet engine order in history - placed by rapidly growing Indian carrier IndiGo. GE Aviation also unveiled the GE9X engine, the world's largest commercial jet engine, which will go into service strapped to Boeing's new 777X wide-body jets. This week Winoker has had a chance to catch his breath, and in a new letter he reflects on the success of the air show and what it means for the company's investors.

Adding value:
According to Winoker and GE Aviation President and CEO David Joyce, the achievements reflect GE Aviation's commitment to creating enduring value through portfolio renewal and aftermarket strength - the company supplies not just the jet engines but the know-how to keep them running smoothly over the long haul. In Paris, Winoker and colleagues hosted an Investor Day focusing on GE Aviation and the aircraft finance business GECAS, and in his letter he shares some of the frequently asked questions he fielded, on everything from the recent increase in tariffs on China and what makes the GE Aviation's services model unique. Read more here.

Save up your coins, because the glamorous age of supersonic flight may be making a resurgence - for those who can afford it. Plane makers like Boeing and Aerion, as well as NASA, have been working to come up with designs for quiet, supersonic business jets, and last week their efforts got a boost at the Paris Air Show, where Dan Elwell, the acting administrator of the U.S. Federal Aviation Administration, said that his department is moving to streamline the process of getting supersonic aircraft the approvals they need to take to the air. The change can't come fast enough: Current FAA rules governing such travel are 45 years old.

Around the world at 1,150 mph: According to Reuters, which reviewed a draft of the FAA proposal, the updates are meant to 'support the growth of the civil supersonic industry.' In addition to the plane builders themselves, one key player in that industry is GE, whose Affinity engine will be the first civilian supersonic engine in 55 years. It'll operate as high as 60,000 feet and beat current emissions standards as well as stringent noise requirements. The most fuel-efficient supersonic engine ever, the Affinity is being developed for planes like the Aerion AS2, a 12-passenger business jet that will fly 40% faster than the speed of sound and 70% faster than many other business jets - cutting the travel time from New York to a meeting in London by three hours.

The AS2 is scheduled to begin flight tests in 2023. Does that seem like a ways away? Don't worry: Time flies. Read more here.

1. Slippery When Wet

Scientists at Penn Engineering have designed a reusable adhesive that can essentially be turned off and on, with implications for everything from envelopes and wall hangings to gravity-defying boots. It was inspired by snails' mucus.

2. This Is No Fish Story

Researchers from Cornell and the University of Pennsylvania invented a soft robot fish that uses synthetic, energy-storing blood - pumped through its own artificial circulatory system - to swim for up to 36 hours.

3. Freshwater Thinking

Faced with increasing freshwater shortages, governments worldwide are seeking cheap, efficient ways to purify a source that's not going to run out anytime soon: seawater. A new technique from researchers at Rice University uses sunlight to boost the efficiency of desalination systems.

Read more about this week's Coolest Things on Earth here.

- QUOTE OF THE DAY -

'The energy among customers, employees and investors felt electric. It made me proud and excited to be part of GE.'

- Steve Winoker, GE's vice president of investor relations

Quote: GE Reports. Image: GE Reports.

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