Dubai Airshow

CFM, Gulf Air Ink $1.9 Billion Engine Deal

 - November 13, 2017, 3:46 AM

Gulf Air and CFM International on Sunday signed an agreement for the purchase of 58 Leap-1A engines to power 17 Airbus A321neo and 12 A320neo airliners due for first delivery early next year, as well as an additional seven spare engines to support fleet operations. CFM values the engine order at $1.9 billion based on list prices, including a long-term service agreement. Airbus and Gulf Air announced the aircraft order in January 2016.

To support its fleet, the airline has signed a 10-year rate per flight hour (RPFH) agreement. Throughout the term of the agreement, CFM guarantees maintenance costs for all of Gulf Air’s Leap-1A engines on a dollar per engine flight hour basis.

Gulf Air has been a CFM customer since 1992 and currently operates a fleet of 16 Airbus A320neos powered by CFM56-5Bs.

Separately, CFM and Singapore airlines regional unit SilkAir have signed a 15-year RPFH maintenance agreement to support the Leap-1B turbofans scheduled to power the carrier’s new fleet of 37 Boeing 737 Max 8s. CFM values the deal, which includes a total of 80 engines, at $1 billion.

SilkAir took delivery of its first Max 8 in September. Schedules call for delivery of the remaining aircraft through 2024.