How will GE and Snecma's CFM partnership support Leap?
All of the services around Leap will be performed by CFM Services, so GE and Snecma will not separately serve the Leap market. CFM Services will serve it. It's a fantastic relationship and a fantastic joint venture. The plan will be to go to market through CFM Services. Once we moved to the next generation of CFM products, the plan was to have CFM handle not just the engine side, but that we would go to the market on the service side as well.
In the next three to five years, how do you think lifecycle costs will change, and what are you hearing from customers, suppliers and partners on this subject?
Lower maintenance costs and increased time-on-wing—you've got to do both. Over the last six years, our products are up 30% for time-on-wing. Customers are very focused on making sure that we continue to deliver that level of time-on-wing performance—and on shop visit costs, making sure we don't impact time-on-wing and deliver a very competitive maintenance suite of products that allow customers to manage shop costs.
Our products provide not just risk transfer but predictability of cash flows, guaranteed availability, support. That's why for our new products, Leap and GEnx, the level of demand for our OnPoint Solutions contracts is significantly higher than we've seen for our legacy products. The value proposition inherent in those OnPoint agreements is really compelling because ultimately, customers will make the decision. There's a lot of competing products on the market. Customers decide, and they're deciding pretty decisively right now for OnPoint Solutions.
You said that you run a global business, but you rely on local support. Can you tell me more about that approach?
We have our own dedicated internal on-wing support team that literally supports customers around the world 24/7. We also have a network of repair shops—including a big and expanding footprint in Asia. We have a big footprint in Europe, and we have a big footprint in the Americas. We're pretty well-balanced in terms of geographic support for customers, so that when a customer says, 'Latin America,' our customers in Latin America love Celma. Customers in Southeast Asia love Malaysia. Customers in Europe love Caledonia Wales. We're pretty well-balanced in terms of footprint, customer products support, field service engineering and on-wing support. We're pretty well-diversified in terms of geography with our shops.
Do you have any concerns about finding the right technical staff to support this growing global fleet?
You want to be careful not to sound too arrogant, but we have a fantastic group of engineers in this business, on the design, manufacturing and aftermarket sides, so I believe we've got some really strong resources. The great thing about this business is we have a lot of people who have great experience, so there are people in the business with families who have been here for generations. They have been here for their entire careers, and that includes globally as well as here in the U.S.