ALAFCO Orders LEAP-1A to Power 35 Airbus A320neo Aircraft In US $840 million U.S. Order

February 15, 2012

Aviation Lease And Finance Company (ALAFCO), the Kuwait-based international aircraft leasing company, today announced that it has selected CFM International's advanced LEAP-1A engines to power 35 new Airbus A320neo aircraft scheduled for delivery between 2019 and 2021. The firm engine order is valued at approximately $840 million U.S. at list price.

"We know from the high demand of our customer base how reliable and cost-effective the CFM56 product line has been," said Ahmad A. Alzabin, ALAFCO chairman & CEO. "Introducing the LEAP-1A-powered A320neo into our portfolio continues a very successful collaboration between us and is an important part of our long-term growth strategy. We believe the advanced technology of this engine, coupled with the legendary CFM reliability and low overall cost of ownership, will provide our airline customers even greater fuel and operating efficiency."

ALAFCO, which was formed in 1992, is a long-time CFM customer. Today, the majority of its portfolio - 44 single-aisle aircraft - is powered by CFM56 engines. The leasing company has an aggressive growth plan and today's order is the next step in ALAFCO's program to grow its portfolio to 100 airplanes over the next few years.

"It's great to welcome ALAFCO to the ever-growing LEAP family of customers," said Jean-Paul Ebanga, president and CEO of CFM International. "We have a great long-term relationship with them and we appreciate their continued confidence in the CFM product lines."

"All of the benefits we are building in to the LEAP technology footprint will have a very positive impact on ALAFCO's customers," said Gael Meheust, vice president, Sales, for CFM. "This engine will provide unprecedented levels of efficiency and environmental responsibility while maintaining the legacy of aviation's most reliable product line, the CFM56 family."

LEAP engines incorporate revolutionary technologies never before seen in the single-aisle aircraft segment. This engine combines advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies, making it a major breakthrough in engine technology. Providing up to 15 percent better engine fuel efficiency, at current fuel prices, translates to as much as $1.6 million in fuel cost savings alone for customers per airplane, per year. LEAP technology will also achieve double-digit improvements in CO2 emissions andnoise levels, all while providing the industry's best reliability and lowest maintenance costs.

LEAP is a product of CFM International, a 50/50 joint company between Snecma (Safran group) and GE. CFM is the world's leading supplier of commercial aircraft engines, with nearly 23,000 delivered to 500+ operators around the globe.