Thursday, June 20, 2013

AirAsia in US$8.6b engine deal to power Airbuses


Fast-growing budget carrier AirAsia said Thursday it had ordered 100 engines worth US$8.6 billion from manufacturer CFM International to power Airbus A320 airliners ordered last year.

The deal inked on Wednesday in France includes 64 new LEAP-1A engines for fuel-efficient A320neo jets, the Malaysia-based carrier said in a statement.

Asia's largest budget carrier by fleet size said the order also includes a 20-year service agreement.

CFM - a joint venture between GE Aviation of the United States, and France's Safran - said the LEAP engines provide up to 15 per cent better fuel efficiency.

AirAsia ordered 100 A320s for US$9.3 billion in December.

Airbus said at the time that the deal made AirAsia the biggest customer for single-aisle A320 airliners in the world, with a total of 475.

The airline serves about 70 destinations in 20 countries across Asia.

SOURCE

A huge deal for the engine maker, one which will propel the company forward. With massive plane orders being made in recent months, the choice of engine used is a massive market for these engine makers. Clinching a deal of such size will be very beneficial for the company. Not only will they provide the initial power-up, they will also provide the maintenance service, which is another huge chunk of money involved.




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