- Kuwait Finance House has announced it will purchase four Airbus A320 aircraft with CFM56-5B engines in an engine order valued at approximately $40 million. The company has appointed its leasing subsidiary, Aviation Leasing & Finance Company (ALAFCO), to manage its fleet and transactions
CFM56-5B engines are produced by CFM International, a 50/50 joint company between Snecma Moteurs (Safran Group) of France and General Electric of the United States.
ALAFCO is scheduled to begin taking delivery of the aircraft in 2003. The A320s are part of the companys plans to expand and diversify its customer base throughout the Middle East, Far East, Europe, and Africa.
Mr. Jassar Al-Jassar, general manager, Kuwait Finance House and vice chairman of ALAFCO expressed pleasure at choosing the highly popular CFM56 engine for its lease investment portfolio. Mr. Al-Jassar said, "We are entering into a new business in terms of owning aircraft and engine selection was made after taking into account the demand for CFM56-powered A320-200 aircraft. We believe it will be a good investment for KFH."
"We are beginning a new era with our company and this purchase is the first step in our plans for globalization," said Ahmed Al-Zabin, president and CEO of ALAFCO. "We selected the CFM56-5 engine to power these A320s after an extensive technical evaluation. This engines proven reliability and low cost of ownership, coupled with the reputation CFM has in the market for customer support, makes these aircraft a valuable addition to our fleet and a strong basis for our future expansion."
The CFM56-5B provides airlines a distinct commonality advantage as it provides one bill of materials for every A320 model. The CFM56-5 is the engine of choice for the A320 family, having been selected to power 56 percent of the A318/A319/A320/A321 aircraft ordered.
One of the primary factors behind the CFM56-5s broad-based market acceptance has been its simple, rugged architecture, which gives it the highest reliability, durability, and repairability in its class. In addition, CFM continually invests in technology enhancements that make the engines even better.
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 other engine in this thrust class can match this record. The CFM56-5 also has the advantage in global cost of ownership, which is determined by such factors as shop visit rate, life-limited parts, in-flight shutdown rate, delays and cancellations, and fuel burn.
In addition to the A320 family, CFM56 engines are the exclusive powerplants for the long-range Airbus A340-200 and -300, in addition to the Boeing Classic and Next-Generation 737 models. CFM is the worlds leading supplier of commercial aircraft engines, garnering nearly 50 percent of the new aircraft orders placed in the last decade. In the first six months of 2000, CFM56 engines were chosen to power 270 of the 503 100+ passenger aircraft ordered in that time frame. Overall, CFM has received firm orders from 300 customers worldwide for more than 14,000 engines at a value of about $70 billion.
"We are pleased to add Kuwait Finance House to the long list of customers that have placed their trust in CFM to power their A320 family aircraft," said Jean-Pierre Cojan, vice president of marketing and sales for CFM International. "We are confident that the market preference for the CFM56 will go a long way in helping Kuwait Finance House place their A320 on the market."