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$9.1 Bn Chinese cracker for CFM

CFM International has sealed US$9.1 billion of agreements during French president Emmanuel Macron’s state visit to China this week, including deals with Hainan, Spring and Xiamen Airlines that represent orders and support for close to 500 engines.

The total value of the agreements and Memorandums of Understanding (MoUs) for new engine orders and long-term support agreements is at list price.

A $2.9 billion deal with Spring Airline covers the purchase of 120 LEAP-1A engines to power 60 Airbus A320neo aircraft, that was first confirmed earlier this week after initially being announced at the Paris Air Show last summer. It also covers a 10-year Rate for Flight Hour agreement, under the terms of which CFM will support the entire fleet on a dollar per flight hour basis.

The MoU with Hainan Airlines Holding Company Ltd., a subsidiary of the HNA Group, is valued at approximately $4.2 billion and covers new and spare LEAP-1A engines plus a long-term support agreement. The engines are for 55 A320neos while the long-term support agreement is for Hainan Airlines Holding and its affiliates.

A further MoU with Xiamen Airlines is valued at approximately $2.05 billion and covers installed and spare engines, along with a long-term time and materials support agreement.

The LEAP engine entered commercial service in August 2016 and is being used by 30 operators, with the fleet in service to date having so far logged more than 250,000 engine flight cycles and 500,000 engine flight hours.

CFM International is a 50/50 joint venture company owned by Safran Aircraft Engines and GE.

 

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