LAN Airlines Orders CFM56-5C/P Upgrade Kits

July 18, 2006

FARNBOROUGH July 18, 2006 Lan Airlines has placed a $48 million order for CFM56-5C/P kits to upgrade 18 installed and spare engines powering its fleet of Airbus A340-300 aircraft. The airline is schedule to begin taking delivery in July 2006.

CFM International (CFM) is a 50/50 joint company between Snecma (Safran Group) and General Electric Company. The CFM56-5C/P has been performing exceptionally well in service, delivering better fuel burn and longer time on wing than the base CFM56-5C engine. The production engine entered service with South African Airways in 2004 on the A340-300 Enhanced airplane and is currently powering a total of 12 aircraft with South African and Swiss Airlines. Customers have ordered a combined total of 38 upgrade kits, of which 34 have been delivered to date.

The CFM56-5C/P incorporates the advanced 3-D aerodynamic technology originally developed for the CFM56-5B/P powerplant for the A320 family, including the high-pressure compressor and high-pressure turbine design. Additional improvements have also been incorporated into the high-pressure turbine to enhance durability. Overall, the CFM56-5C/P provides operators up to a 1 percent improvement in specific fuel consumption and up to an 18° C improvement in exhaust gas temperature (EGT). This added margin translates to up to 10 percent lower maintenance costs through longer time on wing. Upgrade kits are installed at normal overhaul and include the compressor and high-pressure turbine, in addition to low-pressure turbine hardware. Upgraded engines are fully interchangeable and intermixable with current engines and are virtually transparent in the cockpit. CFM completed back-to-back engine tests with an overhauled CFM56-5C engine to verify the benefits of the upgrade kit for current A340 operators.

The engine maintains the CFM56-5C noise signature, which is the quietest in its class. The CFM56-5C-powered A340 meets all current noise regulations with a cumulative margin of 23 EPNdB (effective perceived noise in decibels) versus the International Civil Aviation Organisation (ICAO) Stage 3 rule.

Jamie Jewell

+1 513.885.2282

Charles Soret

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Perry Bradley

+1 513 375 2597

Talal Ahmed Almahmood

+973 173 3819