Bloomberg News

AirAsia Orders $8.6 Billion CFM Engines to Power A320 Planes

June 19, 2013

AirAsia Bhd. (AIRA), the region’s biggest budget carrier, selected an engine venture between General Electric Co. (GE:US) and Safran SA (SAF) to power 100 new planes it ordered in December.

The order for CFM International engines is valued at $8.6 billion at list prices, Sepang, Malaysia-based AirAsia said in an e-mailed statement yesterday. The airline already operates more than 120 Airbus A320s powered by the venture’s products.

AirAsia, Airbus’s biggest customer for single-aisle planes in Asia, has ordered more than 300 aircraft since 2011 as economic growth spurs travel demand in the region. Some 15 low-fare carriers started flying in the past decade across Asia-Pacific, the most profitable region worldwide for at least the fourth consecutive year, according to the International Air Transport Association.

AirAsia’s deal also includes a 20-year agreement that CFM will guarantee maintenance costs on a dollar per engine flight hour basis, according to the statement.

AirAsia’s order in December included 36 current-generation A320s and 64 fuel-efficient A320neos.

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net


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