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GE Sells AirAsia Stake in GE Engine Services

 - December 13, 2006, 10:56 AM

AirAsia has taken a 19-percent stake in GE Engine Services’ engine-overhaul business in Kuala Lumpur, Malaysia, and become the first customer for the engine company’s new OnPoint service package. Under a 23-year agreement signed here yesterday, GE will provide maintenance, repair and overhaul for 129 CFM56-5B engines that will power the airline’s Airbus A320-200 fleet. The low-cost carrier expects to exercise options on at least 70 additional engines. OnPoint is described as a “more-customized and more-flexible” program for airlines, which are able to specify the level of support, period and numbers of engines to be covered.