CFM56 Upgrade Sales Surpass $1.5 Billion

LE BOURGET June 18, 2007

CFM International has received orders for a total of more than 1,100 CFM56-3 and CFM56-5C/P upgrade kits at a value of more than $1.5 billion at list price. To date, more than 500 CFM56 engines have been upgraded.

CFM56 engines are produced by CFM International (CFM), a 50/50 joint company between Snecma and General Electric Company.

CFM has received orders for more than 150 kits to date in 2007.

-Southwest Airlines ordered for up to 92 additional CFM56-3 Advanced Upgrade kits at a value of approximately $145 million, bringing its total order to 447 kits.

-Mexico's new low-fare carrier, vivaAerobus, ordered Advanced Upgrade kits for its entire fleet of 10 CFM56-3 engines.

-Japan Transocean Air (JTA), a part of the JAL Group, ordered 10 firm, 20 option CFM56-3 Advanced Upgrade kits at a value of approximately $15 million for the firm order, which will enable the airline to upgrade the majority of its entire fleet of CFM56-3 engines by 2010.

-Continental Airlines ordered 42 Enhanced Performance Kits for its CFM56-3 engine fleet.

Other upgrade customers include KLM Royal Dutch Airlines, who ordered 31 Advanced Upgrade kits and has taken delivery of 17; Alaska Airlines, which ordered 88 Enhanced Performance upgrade kits and has 40 in service; Air China, which is operating two upgraded CFM56-3 engine; and LAN, which ordered 18 CFM56-5C/P kits and has taken delivery of 10 upgraded engines to date.

The CFM56-3 Advanced upgrade kit features three-dimensional high-pressure compressor (HPC) aerodynamics (3-D aero) and new high-pressure turbine hardware. The upgrade is installed during normal overhaul and provides significant benefits, including: up to a 1.6 percent improvement in specific fuel consumption, as well as up to 20„a C additional exhaust gas temperature (EGT) margin.

The upgrade also improves post-overhaul time on wing by as much 1,500 to 2,000 hours. Turbine improvements include new nozzle and shroud materials, a new blade coating, and improved cooling. These changes extend component life and lower scrap rates and repair costs by as much as 50 percent.

CFM also offers two additional CFM56-3 kit options to provide customers more flexibility in managing maintenance costs. The Enhanced Performance kit includes the 3-D aero HPC blades and vanes and provides increased exhaust gas temperature (EGT) margin that translates to longer time on wing, depending on airline operations. The Enhanced Durability kit reduces scrap rate by as much as 50 percent, thus reducing maintenance costs.

The CFM56-5C/P upgrade for current Airbus A340-300 operators incorporates the advanced 3-D aerodynamic technology originally developed for the CFM56-5B/P powerplant for the A320 family, including the high-pressure compressor and high-pressure turbine design. Additional improvements have also been incorporated into the high-pressure turbine to enhance durability. Overall, the CFM56-5C/P provides operators a one percent improvement in specific fuel consumption and up to a 18 degrees centigrades improvement in EGT margin, translating to as much as 10 percent lower maintenance costs through longer time on wing.

These upgrade kits are also installed at normal overhaul and include the compressor and high-pressure turbine, in addition to low-pressure turbine hardware. Upgraded engines are fully interchangeable and intermixable with current engines and are virtually transparent in the cockpit.

For further information, contact:

Jamie Jewell
- 513.552.2790

Rick Kennedy
- 513.243.3372

Vincent Chappard

Antoinette Menard

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