Kuala Lumpur, 15 December 2006 -- AirAsia, the leading low fare airline in Asia, has selected CFM International's CFM56-5B engine to power its 40 firm and 30 options Airbus A320 aircraft. The purchase agreement for the firm engine order, which covers a total of 80 engines plus 6 spares, is valued at approximately USD $500 million at list price. Concurrently, AirAsia has today signed an OnPoint SM Solution engine service agreement with General Electric Company (GE) for the maintenance, overhaul and repair of firm 86 CFM56-5B engines that will power the airline's new fleet of Airbus A320-200 aircraft. The 20-year agreement is worth approximately USD$1.1 billion.
An official signing ceremony was held between both parties at Hilton Kuala Lumpur today. The purchase agreement was signed between Chaker Chahrour, General Manager of GE Aviation (the aviation arm of General Electric Company) and Dato' Tony Fernandes, Group Chief Executive Officer of AirAsia Berhad.
CFM International (CFM), a 50/50 joint company between Snecma and General Electric Company, is the world's leading supplier of commercial aircraft engines, with more than 15,000 in service worldwide.
"We are very excited by AirAsia's selection of the CFM56-5B to power its 40 firm and 30 follow-on order of A320 fleet," said Chaker. "The decision reaffirms the --5B's position as one of the most reliable engines in the world."
Dato' Tony Fernandes, Group Chief Executive Officer, AirAsia Berhad, said, "We have a synergistic relationship with our partners, GE Aviation and CFM International, and this signing marks the extension of the relationship with our confirmed order of additional 40 Airbus A320. We choose CFM56-5B engine based on its superior reliability, durability and performance. Having entered into our 5th year of operations, our order of 100 Airbus A320 will make AirAsia the youngest and most modern fleet in the region."
"We have also appointed GE Aviation to undertake the engine maintenance programme for 20 years as they met our fleet requirements to further expand our network and strive for greater cost efficiency," added Dato' Tony.
AirAsia, which will become the single largest Airbus A320 operator in the Asia-Pacific region by year 2012 with this recent aircraft order, would operate a mixed fleet during the transition from Boeing 737-300s to the Airbus A320. The 180--seat A320s entered the fleet since December 2005. By July 2009, AirAsia's fleet will be fully operated with 100 Airbus A320.
The high reliability, long on-wing life, and low maintenance costs of the CFM56-5B makes it extremely popular with leasing companies, low-cost carriers, and major airlines worldwide. More than 1,700 CFM56-5B engines have been delivered to date, and the fleet is growing at a rate of about 20 engines per month.
Primary factors behind the engine's broad-based market acceptance include reliability rates among the best in the industry (with a 0.001 in-flight shutdown rate) durability, and low cost of ownership brought about by the engines simple, rugged architecture. On average, CFM56-5B engines have a maintenance cost advantages of nearly $2 million per engine over a 15-year period versus the competition. The CFM56-5B is the only engine that can power every model of the A320 family keeping the same bill of materials, giving airlines a distinct commonality advantage.
ABOUT AIRASIA AirAsia revolutionized air travel in the region to become the leading and largest low fare airline in Asia. Entering into its 5th year, AirAsia to date has an astounding fleet size of 49 aircraft, an achievement the young airline is proud to carry. AirAsia together with its associates Thai AirAsia and Indonesia AirAsia have carried over 26 million passengers. The airline's extensive network presently serves over 70 domestic and international routes to Malaysia, Thailand, Indonesia, Macau, China (Xiamen), Singapore, Cambodia, Vietnam and the Philippines. In 2006, AirAsia added 15 aircraft to its fleet, seven of which are the brand new Airbus A320 aircraft. The aircraft proves to be a winning choice as AirAsia guests enjoy bigger seating capacity, wider aisle, greater comfort and quieter ride. Airbus A320 is reputed for being the most modern and sophisticated aircraft of its class, with high reliability and low operating costs. With 14 Airbus A320 in hand now, AirAsia looks forward to 86 more to add to its fleet, making it the largest, youngest and most modern fleet in the region.
For more information, log on to www.airasia.com
For further information, MEDIA please contact:
AIRASIA
CFM
Corporate Communications
[email protected]
business unit
tags