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Boeing Selects 7E7 Engine Maker

By: Associated Press
Updated: Tue 7:01 PM, Apr 06, 2004

April 6-- Boeing chose General Electric and Rolls Royce to supply the engines for its planned new 7-E-7 Dreamliner airplane, striking deals that could be worth billions of dollars to the two companies.

The announcement was a blow to Connecticut-based United Technologies' Pratt and Whitney, the Number Three commercial engine maker, who analysts say needed the business the most.

It's good news for Connecticut-based General Electric. Analysts say the engine contracts could be worth a total of $40 billion if Boeing's projections for the airplane market are correct,

The wide-body is to carry up to 250 passengers, traveling just as fast as today's planes, using 20-percent less fuel. With the rising cost of jet fuel a drag on the airlines' financial fortunes, Boeing hopes it's a concept that has appeal.

It has yet to announce a deal with an airline buyer of the plane, but that word is expected in the next few months.


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