AirAsia puts in massive engine order

AirAsia has selected CFM International’s CFM56-5B engine to power its 40 firm and 30 options Airbus A320 aircraft.The purchase agreement for the firm engine order, which covers a total of 80 engines plus 6 spares, is valued at approximately US$500 million at list price. Concurrently, AirAsia has signed an OnPoint Solution engine service agreement with General Electric Company (GE) for the maintenance, overhaul and repair of firm 86 CFM56-5B engines that will power the airline’s new fleet of Airbus A320-200 aircraft. The 20-year agreement is worth approximately US$1.1 billion.

CFM International (CFM), a 50/50 joint company between Snecma and General Electric Company, is a leading supplier of commercial aircraft engines, with more than 15,000 in service worldwide.

“We are very excited by AirAsia’s selection of the CFM56-5B to power its 40 firm and 30 follow-on order of A320 fleet,” said Chaker Chahrour, General Manager of GE Aviation. “The decision reaffirms the -5B’s position as one of the most reliable engines in the world.”

Dato’ Tony Fernandes, Group Chief Executive Officer, AirAsia Berhad, said, “We have a synergistic relationship with our partners, GE Aviation and CFM International, and this signing marks the extension of the relationship with our confirmed order of additional 40 Airbus A320. We choose CFM56-5B engine based on its superior reliability, durability and performance. Having entered into our 5th year of operations, our order of 100 Airbus A320 will make AirAsia the youngest and most modern fleet in the region.”

“We have also appointed GE Aviation to undertake the engine maintenance programme for 20 years as they met our fleet requirements to further expand our network and strive for greater cost efficiency,” added Dato’ Tony.


AirAsia is expected to become the single largest Airbus A320 operator in the Asia Pacific region by year 2012. By July 2009, the airline’s fleet will be fully operated with 100 Airbus A320.