Philippine Airlines Expands A320 Fleet With CFM56-5B Engine Order

May 30, 2006

EVENDALE, OHIO May 30, 2006 As part of an extensive fleet renewal program, Philippine Airlines (PAL) will more than double its A320 fleet with a $110 million order for CFM56-5B engines to power nine firm, five option aircraft.

CFM56-5B engines are produced by CFM International (CFM*), a 50/50 joint company between Snecma (Safran Group) and General Electric Company. To date, more than 15,600 CFM56 engines are in service powering more than 6,250 commercial and military aircraft are in service with 452 operators around the globe.

PAL also plans to lease two additional A320s and two A319s from GE Capital Aviation Services. Deliveries of all firm and leased aircraft are scheduled to begin in the second half of this year. If the airline exercises all options, the final aircraft would be delivered in 2012.

"The modern technology of the CFM56-5B-powered A320 will allow PAL to offer an unmatched product to the market," said vice chairman and treasurer Mariano Tanenglian. "This fleet modernization program is a fitting milestone as we mark PAL's 65th anniversary in March 2006."

Philippine Airlines is a long-time CFM customer. In addition to the seven A320 aircraft in its fleet, the airline also operates four long-range CFM56-5C-powered A340-300 aircraft and seven CFM56-3-powered Boeing 737-300/-400 aircraft. PAL's new single-aisle aircraft will be deployed mainly on the airline's extensive domestic network, as well as service low-traffic Asian regional destinations.

The CFM56-5B is the engine of choice for the Airbus A320 family and is popular with major airlines, low-cost carriers, and leasing companies alike. Nearly 2,100 CFM56-5B engines have been delivered to date to 94 operators. In 2006, the fleet will grow at a rate of about 30 engines per month. The engine has gained broad-based industry acceptance through outstanding reliability, durability, low cost of ownership, and world-class customer and product support. The CFM56-5B is the only engine that can power every model of the A320 family, from the small A318 up to the A321, with the same bill of materials, giving airlines a significant commonality.

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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