Chinese flag carrier Air China has selected the CFM56-5B engine to power its new fleet of 24 Airbus A321s. The engine order is valued at approximately $345 million at list price and the airline will take delivery between 2008 and 2012.
CFM56-5B engines are a product of CFM International (CFM), a 50/50 joint venture between Snecma (Safran Group) and General Electric Company and the world's leading supplier of commercial aircraft engines.
Air China Limited has been a CFM customer since 1986 and operates more than 100 CFM56-powered aircraft, including Airbus A319s and A340-300s, as well as Boeing Classic 737-300s and Next-Generation 737-600/-700/-800 aircraft.
In addition to the engine order, Air China will sign a 15-year maintenance agreement covering engine overhaul and repair of its new engines. For the existing fleet, Air China will sign a 15-year material agreement that will provide the airline with a full range of new, used, and repaired material offerings tailored to the specific requirements of each individual overhaul. Also, Air China and CFM have agreed to establish an innovative maintenance repair, and overhaul (MRO) joint venture that will combine the airline's extensive expertise with that of CFM and its parent companies, Snecma and GE, to create a truly world-class maintenance facility.
"This is a great new phase in our relationship with Air China," said Mike Wilking, vice president, China region, for CFM. "We're honored both by their continued confidence in our products and by the opportunity to be such an integral part of their overall operations going forward."
The CFM56-5B is the engine of choice for the Airbus A320 family and is popular with major airlines, low-cost carriers, and leasing companies alike. More than 2,450 CFM56-5B engines have been delivered to date, and the fleet is growing at a rate of about 32 engines per month. Primary factors behind the engine's broad-based market acceptance include this industry's best reliability, durability, low cost of ownership, and world-class customer and product support. The CFM56-5B is the only engine that can power every model of the A320 family, from the small A318 up to the A321, with the same bill of materials.
For more information on CFM International, visit us at www.cfmaeroengines.com
About Air China
Air China Limited (Air China) is the national flag carrier of China and a leading provider of air passenger, air cargo and airline-related services in China. Its operational head office is in Beijing. It has an extensive route network serving major Chinese cities and international destinations, with dominant market share measured by total traffic volume for the Beijing Capital International Airport. It also provides airline-related services, including aircraft maintenance, ground services and in-flight catering services in Beijing, Chengdu, Hong Kong and other locations through its own business units and joint ventures. As of 31 December 2006, it operated a fleet of 207 aircraft, serving 77 domestic and 38 international and 1 regional Airports.
Air China was listed on the Hong Kong Stock Exchange and the London Stock Exchange on 15 December 2004 under codes 0753 and AIRC respectively. On 2 July 2006, Air China debuted its American Depositary Receipt (ADR) listing on the New York Stock Exchange under the code AIRYY. On 16 August 2006, Air China was listed on the Shanghai Stock Exchange under code 601111. On 4 August 2004, Air China was designated as the sole official airline partner of the Beijing Olympic Games. For further details, please visit Air China's website: www.airchina.com.cn.