GE: High oil costs to fuel record jet engine production  General Electric (GE) said this week that it expects demand for its jet engines to hit record levels over the coming year, according to a published report.

Bloomberg reports that GE said its jet engine manufacturing would likely reach record levels over the next 18 months as exceedingly high oil prices prompt airlines to seek out the latest and most fuel efficient jet engines. Currently, the price of a barrel of crude oil is hovering around $100, hurting profit margins and leading to increased business costs.

As they seek out business cost reductions, airlines are turning toward innovative technologies, GE aviation chief executive David Joyce said recently.

"In this kind of environment it's almost Darwinian - the best equipment will survive," Joyce affirmed.

GE projects jet engine production for commercial planes will climb by 13 percent to 2,480 in 2012. What's more, when military models are included, output could rise 5 percent to a record 3,370. GE is the world's biggest manufacturer of jet engines, and its order book is "very strong" across all regions of the globe, Joyce said. 
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