Gulf Air, CFM Sign a $1.9 Billion LEAP-1A Engine & Services Deal
(Source: CFM International; issued Nov 12, 2017)
DUBAI, U.A.E. --- Gulf Air and CFM International today signed an agreement for the purchase of 58 LEAP-1A engines to power 17 Airbus A321neo and 12 A320neo aircraft, as well as an additional seven spare engines to support fleet operations. The engine order is valued at approximately $1.9 billion U.S. at list price, including a long-term service agreement. The aircraft order was announced in January 2016.
To support its fleet, the airline has signed a 10-year Rate Per Flight Hour (RPFH) agreement. Throughout the term of the agreement, CFM guarantees maintenance costs for all of Gulf Air’s LEAP-1A engines on a dollar per engine flight hour basis.
Gulf Air has been a CFM customer since 1992 and currently operates a fleet of 16 Airbus A320ceo aircraft powered by CFM56-5B engines. Going forward, the airline will welcome 17 new Airbus A321neo and 12 A320neo aircraft, along with 10 Boeing wide-body aircraft due to begin delivery in early 2018. Gulf Air’s incoming fleet will facilitate the long-term expansion capabilities for the airline’s future network requirement. The modern fleet will herald a new era for Gulf Air as it continues to enhance its product and service offering.
Marking the announcement, Gulf Air Deputy Chief Executive Officer, Captain Waleed Abdulhameed Al Alalawi, said: “CFM International are a key and long-standing partner for Gulf Air, with whom the airline has worked closely for over two decades. Our selection of this engine for our incoming Airbus aircraft is significant, reflecting the reliability and expertise afforded by CFM products. This is integral to our ongoing strategic development and I am pleased to call CFM International Gulf Air’s partner of choice as we move ahead with our long-term plans to shape the future trajectory of our carrier.”
“It is highly gratifying when an airline of this stature makes your products such an essential part of its operations,” said Gaël Méheust, president and CEO of CFM International. “We are honored to be a part of this team and to be a part of Gulf Air’s continued growth and success. The CFM56-5B engines they currently operate have performed very well over the years. We know that the LEAP-1A engines will bring even greater benefits and we can’t wait to help them induct this advanced technology into their fleet.”
The LEAP engine entered commercial service in August 2016 and is providing its more than 20 operators with a 15 percent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; and lower noise and NOx emissions. To date, the fleet in service has logged nearly 200,000 engine flight cycles and 400,000 engine flight hours while maintaining CFM’s industry-leading reliability.
Gulf Air, the national carrier of the Kingdom of Bahrain, commenced operations in 1950, becoming one of the first commercial airlines established in the Middle East. Today, Gulf Air is a major international carrier serving 42 cities in 25 countries spanning three continents.
The LEAP engine is a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. This engine has experienced the fastest order ramp up in commercial aviation history and CFM has received orders and commitments for a total of nearly 14,000 LEAP engines across all three models through October 2017.
ICBC Leasing Places $1.1 Billion Order for CFM LEAP-1B Engines
(Source: CFM International; issued Nov 10, 2017)
BEIJING, China --- U.S. President Trump and China President Xi Jinping, today witnessed the signing of an agreement between ICBC Financial Leasing Co., Ltd, a subsidiary of Industrial and Commercial Bank of China (ICBC), and CFM International for the purchase of 80 LEAP-1B engines to power 40 Boeing 737 MAX aircraft.
Yi Huiman, chairman of ICBC and John Rice, vice chairman of CFM parent company GE, signed the agreement. The engine order is valued at nearly $1.1 billion U.S. at list price and ICBC Leasing is scheduled to begin taking delivery in 2018. The airplanes were previously announced as part of a Chinese block buy.
"We appreciate the trust that ICBC Leasing has in our products and service," said Weiming Xiang, president of CFM International Greater China. "I believe the LEAP-1B powered Boeing 737 MAX will bring greater performance and efficiency for ICBC Leasing's customers and greater comfort for their passengers."
ICBC Leasing, a long-time customer, has noted that CFM has maintained its commitment to new technologies and services that are enabling the leasing company to assure its airline customers of the best possible products.
ICBC Leasing first became a CFM customer in September 2011 when it placed an order for CFM56-5B engines to power 22 Airbus A320 family aircraft. Since then, ICBC Leasing has placed multiple orders with CFM, including a $300 million order in 2014 for 30 additional CFM56-5B engines; and, most recently, at the 2017 Paris Air Show when the company placed a $1.0 billion order for 80 LEAP-1A engines to power new A320neo aircraft.
The LEAP engine family has had an exceptional entry into commercial service with 24 customers currently operating more than 130 aircraft on four continents. Overall, the fleet has logged nearly 200,000 cycles and 400,000 hours while maintaining CFM's industry-leading reliability and the highest utilization rate in this thrust class. The engine is delivering a 15 percent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; and lower noise and NOx emissions.
ICBC Leasing, a wholly-owned subsidiary of ICBC Group, the largest commercial bank in the world, is the largest Chinese lessor and top 5 lessor worldwide. ICBC Leasing has a total of 555 aircraft in portfolio, with 326 aircraft delivered by today. ICBC Leasing has nearly 70 operators from 33 countries and regions worldwide. The total value of the aircraft assets is over 110 billion RMB.
The LEAP engine is a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. This engine has experienced the fastest order ramp up in commercial aviation history.
Silkair Signs $1 Billion CFM LEAP-1B Engine Support Agreement
(Source: CFM International; issued Nov 10, 2017)
WEST CHESTER, Ohio --- SilkAir has signed a 15-year Rate Per Flight Hour (RPFH) maintenance agreement with CFM International to support the LEAP-1B engines that will power its new fleet of 37 Boeing 737 MAX 8 aircraft. The agreement is valued at $1 billion U.S. at list price and includes a total of 80 engines.
SilkAir, which is the regional wing of Singapore Airlines, took delivery of its first Boeing 737 MAX 8 airplane on 27 September 2017. Operations with the MAX aircraft began on 5 October 2017 with the first flight travelling to Penang, Malaysia. Deliveries of the remaining aircraft are scheduled through 2024.
Rate per Flight Hour agreements are part of CFM's portfolio of flexible aftermarket support offerings. Under the terms of the agreement, CFM guarantees maintenance costs for all SilkAir's LEAP-1B engines on a dollar per engine flight hour basis.
Based in Singapore, SilkAir currently operates a fleet of 17 CFM56-7B-powered Boeing Next-Generation 737 aircraft.
"SilkAir has outstanding reputation for the young age and technical excellence of its fleet," said Gaël Méheust, president and CEO of CFM International. "We are honored to be an even bigger part of that team and look forward to helping them maintain that reputation."
LEAP-1B engines are a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. The LEAP engine family is the fastest-selling in aviation history with nearly 14,000 orders place through October 2017.