General Electric CEO Culp expands role to head aviation unit

General Electric said on Monday Chief Executive Larry Culp will also head its aviation unit effective immediately, replacing John Slattery, as the industrial conglomerate prepares to split into three public companies.

Slattery, who has been at the helm at the company’s jet-engine unit since Sept. 2020, will become the unit’s chief commercial officer.

GE also named Otis Worldwide Corp executive Rahul Ghai as GE Aviation’s new chief financial officer. Ghai played a key role in steering Otis following its breakup from United Technologies in 2020.

GE plans to spin off its healthcare business into a separate publicly traded company next year. It would combine its power and renewable energy units, and spin off that operation in 2024. Following the split, it will become an aviation company, headed by Culp.

John Walsh, an analyst at Credit Suisse, said the leadership shuffle has created “known and highly regarded” management team at the jet-engine unit, which is also GE’s cash cow.

While the company’s aviation business is grappling with persistent supply chain and labor shortages, GE expects it to post at least 20% revenue growth this year on the back of a recovery in the global airline industry from the pandemic-induced slump.

GE’s shares were down 0.15% at $66.90 in afternoon trade. Reuters.com