Aviation Capital Group (ACG) today announced that is has selected CFM International's CFM56-5B engine to power 25 firm Airbus A320 family aircraft. The order is valued at approximately $325 million (U.S.) at list price and the aircraft are scheduled for delivery between 2010 and 2012.
CFM56-5B engines are produced by CFM International, a 50/50 joint company between Snecma (Safran Group) and General Electric Company.
ACG is a global jet aircraft leasing and asset management company. Founded in 1989, the company is actively engaged in aircraft acquisition and leasing to international airlines and provides advisory services for aircraft investors and institutional clients worldwide. In addition to the 25 new A320s, ACG also has outstanding orders for 60 CFM56-7B-powered Boeing Next-Generation 737-800 aircraft.
"The broad industry acceptance of the CFM56 product line makes it an obvious asset to our portfolio," said R. Stephen Hannahs, ACG Group managing director and CEO. "We think this engine/airplane combination fits perfectly with our strategy to meet client needs for modern, cost-effective and fuel-efficient aircraft."
ACG owns and manages a portfolio of more than 200 single- and twin-aisle commercial jets. This portfolio includes the Airbus A320 family, Airbus A330, Boeing 737 Classics and Next Generations, Boeing 757, 767 and freighters. The company has more than 100 737NGs, A319s, A320s and A321s on order. Headquartered in Newport Beach, California, ACG is a wholly owned subsidiary of Pacific LifeCorp, the parent company of Pacific Life Insurance Company.
All of ACG's new CFM56-5B engines will be in the Tech Insertion configuration. This technology will provide operators with a 1 percent improvement in fuel consumption over the life of the product, compared to the base CFM56-5B engine. This lower fuel consumption will also lower CO2, reducing these emissions by 200 tons per aircraft per year. Improved analytic design tools have also enabled CFM to further optimize the Tech Insertion combustor so that it will provide 25 percent lower NOx emissions.
Over the engine's life cycle, Tech Insertion will also provide operators with longer time on wing and will lower maintenance costs by between five and 12 percent, depending on the thrust rating. These benefits are achieved through improvements to the high-pressure compressor and the high- and low-pressure turbines.