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PARIS (Reuters) - Formula One's Team Lotus announced a sponsorship deal with General Electric Co (GE) that deepens links between the U.S. industrial group and a business empire that includes Asia's largest budget airline.
GE will join the Anglo-Malaysian racing team as a "Premium Partner" and its branding will appear on Team Lotus racing cars starting from the British Grand Prix in July.
"We have done well with the budget so far and this gives us a little bit extra," team principal Tony Fernandes told Reuters.
"It will bring us money for an extra upgrade but really 2012 is where we will see the benefits of having GE on board. It is not just about money but about technology expertise."
The sponsorship tie-up with GE comes as Fernandes, who is also chief executive of AirAsia, puts the finishing touches on a potentially massive order for up to 200 Airbus planes for the Malaysian carrier.
The prospect of an aircraft order worth between $13 billion and $17 billion has sparked a fierce battle between engine makers including GE to supply hundreds of jet engines for the expanded AirAsia fleet.
The sponsorship deal underscored predictions by industry sources last week that GE would grab the engine order, after losing a string of similar deals to Pratt & Whitney.
But while he expects his motor racing and aviation interests to mesh in coming years, Fernandes refused to commit to handing the coveted order to GE and its French partner Safran.
"That deal is in the next few weeks and we are still discussing. It has to be a separate discussion but the relationship has been very good," he said in an interview.
"They both have good products," he said of the two engine makers, adding that after-sales service would be a key factor.
Fernandes said he expected to see increasing collaboration between Formula 1, with its emphasis on advanced composites and aerodynamics, and aviation. "Until recently the brains in Formula One were focused on fast cars and we came along and said let's use some of those to bring commercial ventures to the aviation world."
Possible spin-offs for aviation include energy recovery and composite structures that make planes lighter, he said.
The deal will "without a doubt" help with development of KERS, which recovers energy from braking, Fernandes said.
Fernandes, a Malaysian entrepreneur who transformed a small carrier into one of Airbus's largest customers, is negotiating to buy at least 150 revamped medium-haul aircraft called A320neo from the European planemaker complete with fuel-saving engines.
Asked whether the deal would be ready for the Paris Air Show next week, Fernandes said, "I haven't booked any flights to France just yet. The ball is in their (Airbus') court. We pushed this aircraft and applaud Airbus, and let's see what happens."
(Additional reporting by Alan Baldwin; Editing by David Holmes)
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GE will join the Anglo-Malaysian racing team as a "Premium Partner" and its branding will appear on Team Lotus racing cars starting from the British Grand Prix in July.
"We have done well with the budget so far and this gives us a little bit extra," team principal Tony Fernandes told Reuters.
"It will bring us money for an extra upgrade but really 2012 is where we will see the benefits of having GE on board. It is not just about money but about technology expertise."
The sponsorship tie-up with GE comes as Fernandes, who is also chief executive of AirAsia, puts the finishing touches on a potentially massive order for up to 200 Airbus planes for the Malaysian carrier.
The prospect of an aircraft order worth between $13 billion and $17 billion has sparked a fierce battle between engine makers including GE to supply hundreds of jet engines for the expanded AirAsia fleet.
The sponsorship deal underscored predictions by industry sources last week that GE would grab the engine order, after losing a string of similar deals to Pratt & Whitney.
But while he expects his motor racing and aviation interests to mesh in coming years, Fernandes refused to commit to handing the coveted order to GE and its French partner Safran.
"That deal is in the next few weeks and we are still discussing. It has to be a separate discussion but the relationship has been very good," he said in an interview.
"They both have good products," he said of the two engine makers, adding that after-sales service would be a key factor.
Fernandes said he expected to see increasing collaboration between Formula 1, with its emphasis on advanced composites and aerodynamics, and aviation. "Until recently the brains in Formula One were focused on fast cars and we came along and said let's use some of those to bring commercial ventures to the aviation world."
Possible spin-offs for aviation include energy recovery and composite structures that make planes lighter, he said.
The deal will "without a doubt" help with development of KERS, which recovers energy from braking, Fernandes said.
Fernandes, a Malaysian entrepreneur who transformed a small carrier into one of Airbus's largest customers, is negotiating to buy at least 150 revamped medium-haul aircraft called A320neo from the European planemaker complete with fuel-saving engines.
Asked whether the deal would be ready for the Paris Air Show next week, Fernandes said, "I haven't booked any flights to France just yet. The ball is in their (Airbus') court. We pushed this aircraft and applaud Airbus, and let's see what happens."
(Additional reporting by Alan Baldwin; Editing by David Holmes)
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