FARNBOROUGH July 17, 2006 CFM International (CFM) has received orders for 1,270 commercial, military, and spare engines through June of this year at a value of approximately $7.6* billion.
CFM International is a 50/50 joint company between Snecma (Safran Group) and General Electric Company.
"After 2005, we had no expectations that 2006 would be this strong," said Eric Bachelet, president and CEO of CFM International. "We believe we will finish the year with 1,500 new engine orders. Overall the industry is obviously doing very well. Despite fuel prices, many carriers are finally returning to profitability. One of the big differences we're seeing is tremendous growth in aviation in emerging regions around the world, as well as all of the new low -cost carriers entering the market."
CFM set a new record in 2005, receiving orders for 1,640 CFM56 engines at a value of $9.8 billion. The company's previous record, set in 1989, was for 1,343 engines.
The first order of 2006 came from Air One in January when the airline placed a $360 million order for CFM56-5B engines to power 30 firm, 60 option Airbus A320 aircraft. New Mexican start-up airline Interjet followed shortly thereafter with a $120 million CFM56-5B engine order to power 10 firm, 10 option Airbus A320s.
In February, All Nippon Airways chose the CFM56-5B engine to power five firm Airbus A320-200 aircraft in a $60 million order. Indian, formerly known as Indian Airlines, finalized a $500 million CFM56-5B engine order to power its new fleet of 43 A320 family aircraft.
March brought orders from two leasing companies. CIT Group, Inc. placed a $165 million order for CFM56-5B engines to power 12 firm Airbus A320s. GE Commercial Aviation Services placed a $400 million order for CFM56-7B engines to power 30 firm, 30 option Boeing Next-Generation 737-800 and -900ER aircraft.
Hamburg International finalized a $170 million CFM56-5B engine order in April for 14 Airbus A319 aircraft. GoAir, India's newest low-cost carrier, also selected the CFM56-5B to power 10 firm, 10 option Airbus A320 family aircraft in a $120 million firm engine order. Southwest Airlines also announced a $1 billion order that month for CFM56-7B engines to power 79 firm Boeing Next-Generation 737-700 aircraft. Singapore Aircraft Leasing Enterprise (SALE) placed a $140 million order for 10 Boeing Next-Generation 737s. The deal also includes 10 options and 10 purchase rights.
In May, U.S. low-cost carrier Frontier Airlines placed a $75 million CFM56-5B engine order to power six new Airbus A320 family aircraft. As part of an extensive fleet renewal program, Philippine Airlines (PAL) more than doubled its A320 fleet with a $110 million order for CFM56-5B engines to power nine firm, five option aircraft.
Most recently, Australian carrier Virgin Blue expanded its CFM56-7B fleet with a $100 million order for engines to power nine new Boeing 737-800 aircraft.
*All values are quoted at list price