Hainan Places $90 Million CFM56-5B Order

March 2, 2005

HAIKOU, CHINA March 2, 2005 Hainan Airlines, China's fourth largest airline group, has placed an $90 million firm order for CFM56-5B engines to power eight Airbus A319 aircraft. The airline, which also took options on 12 additional A319s, will take delivery between 2005 and 2007. CFM56-5B engines are produced by CFM International, a 50/50 joint company between Snecma Moteurs (Safran Group) and General Electric Company. CFM is the world's leading supplier of commercial aircraft engines with more than 14, 500 engines in service with more than 400 operators worldwide.

Hainan Airlines has been a CFM customer since its first B737 aircraft delivery in 1993 and currently operates 52 Boeing 737 aircraft powered by CFM56-3 and CFM56-7 engines. The airline operates more than 480 domestic flights to about 90 cities throughout China. The new A319s will be operated on short- and medium-haul routes from Haikou, Beijing and Xi'an. "We are honored that Hainan Airlines has chosen again to make CFM an important part of its long-term operations," said Andy Solem, president of CFM International China. "We thank them for their trust and offer them our commitment that we will continue to earn that trust every day." The high reliability, long on-wing life, and low maintenance costs of the CFM56-5 makes it extremely popular with leasing companies, low-cost carriers, and major airlines worldwide. More than 1,700 CFM56-5B engines have been delivered to date, and the fleet is growing at a rate of about 20 engines per month.

Primary factors behind the engine's broad-based market acceptance include this industry's best reliability, durability, and low cost of ownership brought about by the engines simple, rugged architecture. CFM56-5 engines are averaging nearly 16,000 hours on wing prior to initial shop visit, and more than 10,000 hours after overhaul. No competing engine in this thrust class can match this record. On average, CFM56-5B engines have a maintenance cost advantages of nearly $2 million per engine over a 15-year period versus the competition. The CFM56-5B is the only engine that can power every model of the A320 family keeping the same bill of materials, giving airlines a distinct commonality advantage.

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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