AirAsia revs on with RM25.8bil order for CFM engines

June 20, 2013

AirAsia announced that it has ordered additional CFM LEAP-1A and CFM56-5B engines to power the 100 Airbus A320 aircraft it ordered in December last year and signed a comprehensive long-term service agreement to support its fleet.

The order, which comprises LEAP-1A engines to power 64 A32neo, CFM56-5B engines to power 36 A320ceo aircraft, five CFM-56B spare engines and nine LEAP-1A spare engines, is worth US$8.6 billion (RM25.8 billion) at list price.

It includes a 20-year RPFH (Rate per Flight Hour) agreement, under the terms of which the CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

"We are pleased to expand our LEAP and CFM56 engine orders. CFM has been one of the elements that has helped power our growth over the last decade and we are happy to work with CFM to further strengthen AirAsia's expansion plans," its Group Deputy Chief Executive Officer Datuk Kamarudin Meranun said in a statement on Wednesday.

AirAsia has been a CFM customer for more than a decade.

LEAP engines are products of CFM International (CFM), a 50:50 joint company between Snecma (Safran) and General Electric. – Bernama, June 20,2013.


Biz Updates from PR Newswire