GBP Lion Air Firms Up US Leap-1A Engine Order, CFM to Also Provide MRO Services - GBP

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Lion Air Firms Up US Leap-1A Engine Order, CFM to Also Provide MRO Services

Transportation Partners, the leasing arm of Lion Group, and CFM International finalized an order for 380 LEAP-1A engines to power Airbus A320neo/A321neo aircraft. The final engine order, which is valued at $5.5 billion US at list price was originally announced in February 2016, while the aircraft order was announced in March 2013.

 

In addition to the LEAP-1A engines, Lion Group has also ordered 544 LEAP-1B engines to power its Boeing 737 MAX 8, MAX 9, and MAX 10 aircraft, of which 10 are currently in service with Lion Air.  With a fleet of 924 LEAP engines at a total value of $13.4 billion US at list price in service or on order, Lion Group is the largest LEAP engine customer in the world.

 

“Lion Air Group is very pleased to partner with CFM International as part of our journey to strengthen our growth vision by adding LEAP and CFM56 engines to power our fleet,” said Edward Sirait, President and Chief Executive Officer of Lion Air Group.  “CFM has been a great partner in supporting the growth of our fleet operation since the start of our journey.

 

“Our choice to use LEAP-1A engines to power our A320neo fleet and Boeing 737Max is the right decision,” he continued.  “The new fleet of A320neo and Boeing 737 Max are critical elements for our long-term growth that will ensure Lion Air Group’s position as the leading airline in the region. We are optimistic that these engines will give us the highest efficiency and reliability to support Lion Air Group’s growth in the region.”

 

“This is a great new milestone for what has always been a great partnership,” said Chaker Chahrour, vice president of Global Sales & Marketing for CFM parent company GE Aviation.  “Lion Air has already seen the operational benefits of the LEAP-1B engine and understand what a great asset the LEAP-1A will be to its portfolio.  Adding an expanded MRO aspect will take this relationship to a whole level.  We are excited to see what the future brings.”

 

The agreement also includes an extension of the 25-year Material Service Agreement (MSA) for CFM56-7B, CFM56-5B, and LEAP-1B engines originally signed in 2014 and expands its scope to include the LEAP-1A engine.

 

CFM will also provide MRO services to Lion Group’s CFM56 and LEAP engines till their own shop, Batam Aero Technic (BAT) in Batam, Indonesia, is completed.

 

CFM has been supporting the development of Lion Group’s new engine maintenance and test cell facility since 2016, providing project management and expert advice starting from design, construction and commissioning for the new facility.  When completed, BAT will have maintenance and overhaul capability for both CFM56 and LEAP engines.  CFM will provide CFM56 and LEAP engine overhaul training with knowledge transfer that supports the development of highly-qualified local engine MRO specialists.

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