CFM Receives Order For 31 CFM56-3 Advanced Upgrade Kits, Offering Additional Kit Options For Added Flexibility

July 19, 2004

FARNBOROUGH July 19, 2004 KLM Royal Dutch Airlines has placed an order for 31 CFM56-3 Advanced Upgrade kits at a value of approximately $35 million. In addition, CFM International (CFM) has launched two other kit options: the Enhanced Performance kit and the Enhanced Durability kit, giving customers more flexibility in managing maintenance costs.

CFM is a 50/50 joint company between Snecma Moteurs (Safran Group) and General Electric Company.

KLM Royal Dutch Airlines has already overhauled its first engine with the CFM56-3 Advanced Upgrade kit, and the engine should enter the airline's fleet this fall. The Advanced Upgrade kit features three-dimensional high-pressure compressor (HPC) aerodynamics (3-D aero) and new high-pressure turbine hardware. The upgrade is installed during normal overhaul and provides significant benefits, including: up to a 1.8 percent improvement in specific fuel consumption, as well as up to 22 degrees additional exhaust gas temperature (EGT) margin, which reduces maintenance costs through longer on-wing life.

The Enhanced Performance kit includes the 3-D aero HPC blades and vanes and provides increased exhaust gas temperature (EGT) margin that translates to as much as 40 percent longer time on wing, depending on airline operations. This kit is on schedule for certification in September of this year. The Enhanced Durability kit reduces scrap rate by 50 percent, thus reducing maintenance costs. This kit is available now and CFM has received four orders to date.

Southwest launched the CFM56-3 Advanced Upgrade kit in 2001 with an order for 300 kits and is on track to have them all in service by 2006. Air China has ordered five kits, and one kit has been installed at easyJet. More than 4,400 CFM56-3 engines have been produced for the Boeing 737-300/-400/-500 series aircraft, representing a tremendous long-term market potential for the engine upgrade package.

Jamie Jewell

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Charles Soret

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Perry Bradley

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Talal Ahmed Almahmood

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