AirAsia, CFM Sign $23.1 billion order
CFM's largest LEAP-1A customer
LE BOURGET — 18 June 2019 – AirAsia and CFM International today finalized an agreement for the purchase of 200 LEAP-1A engines to power the airline's 100 Airbus A321neo. The airplane order and intent to purchase the engines were announced in July 2016.
At the same time, AirAsia has expanded its 20-year Rate-Per-Flight-Hour (RPFH) agreement to encompass its entire fleet of 808 LEAP-1A engines for a combined total value of $23.1 billion U.S. at list price.
RPFH agreements are part of CFM's portfolio of flexible aftermarket support offerings. Under the terms of the agreement, CFM Services guarantees maintenance costs for the AirAsia's LEAP-1A engines on a dollar per engine flight hour basis.
We have centered our long-term growth and expansion strategy around the larger Airbus A321neo; choosing the right engine to power those airlines is critical to the success of that strategy. For us, the LEAP-1A continues to be the obvious choice. We have been operating it for nearly three years and are very happy. Our passengers like its quiet operation and we like the fuel efficiency and very high asset utilization it gives us.
AirAsia, a pioneer in low-cost travel, has been a CFM customer for nearly 20 years. The airline was an early LEAP customer and placed its initial order for 400 LEAP-1A engines — the largest in aviation history at the time — to power A320neo aircraft in June 2011. They took delivery of their first LEAP-powered A320neo in 2016 and currently operates 39 of the new fuel-efficient airplanes, in addition to 191 CFM56-5B-powered A320ceos. AirAsia is the single largest Airbus A320 operator in the world.
"We love working with AirAsia," said Gaël Méheust, president and CEO of CFM International. "It's an honor to be a part of this innovative, dynamic team and I can't wait to see what's next."
AirAsia, the world's leading low-cost carrier, services an extensive network of over 140 destinations across Asia Pacific. Since starting operations in 2001, AirAsia has carried more than 500 million guests and grown its fleet from just two aircraft to over 200. The airline is proud to be a truly Asean (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia, Thailand and the Philippines as well as India and Japan, servicing a network stretching across Asia, Australia, the Middle East and the US. AirAsia has been named the World's Best Low-Cost Airline at the annual Skytrax World Airline Awards 11 times in a row from 2009 to 2019. AirAsia was also awarded World's Leading Low-Cost Airline for the sixth consecutive year at the 2018 World Travel Awards, where it also won the World's Leading Low-Cost Airline Cabin Crew award for a second straight year. Follow AirAsia on Facebook (AirAsia), Twitter (@AirAsia), Instagram (@airasia), YouTube (AirAsia), Weibo (@亚航之家) and WeChat (亚洲航空).
Safran is an international high-technology group and tier-1 supplier of systems and equipment in the Aerospace and Defense markets. Operating worldwide, Safran has nearly 58,000 employees and generated sales of 15.8 billion euros in 2016. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of 1.7 billion euros in 2016. Safran is listed on the Euronext Paris stock exchange, and its share is part of the CAC 40 and Euro Stoxx 50 indices.
Safran Aircraft Engines designs, produces, sells, alone or in partnership, commercial and military aircraft engines offering world-class performance, reliability and environmental-friendliness. Through CFM International*, Safran Aircraft Engines is the world's leading supplier of engines for short and medium-haul commercial jets.
*CFM is a 50/50 joint company between Safran Aircraft Engines and GE