CFM PIPS Competition In Lufthansa Power Deal

 - November 14, 2011, 10:25 AM

Lufthansa has chosen CFM56-5Bs to power four new Airbus A320s on firm order, CFM International announced at the Dubai Air Show yesterday. The announcement comes just a day after CFM revealed a $2 billion order from Republic Airways of the U.S. covering Leap-1A engines to power 20 A319neos and 60 A320neos.

Lufthansa signed its $60 million order for A320s in September and plans to take delivery in 2012 and 2013. It now operates a fleet of 80 CFM-powered A319s/A320s/A321s and 26 A340-300s. It also flies 62 CFM56-powered Boeing 737 Classics. Approximately 390 CFM engines power its operational fleet.

All of Lufthansa’s new engines will come equipped with the CFM56-5B performance improvement package (PIP) configuration. The new production standard for the CFM56-5B, the PIP-equipped engines entered service earlier this month. The PIP, which includes improvements to the core, fan and compressor blades and vanes, delivers a 0.5-percent fuel burn improvement. 

The big order from Republic accompanied a rate-per-flight-hour agreement with CFM to support a total of 172 Leap-1A engines. Valued at some $3.9 billion over its 18-year term, the services and support arrangement guarantees engine maintenance costs on a dollar-per-engine-flight-hour basis.