Agreements valued at nearly $6 billion U.S.
DUBAI, U.A.E. - 13 November 2011 - Republic Airways Holdings has finalized its $2.0 billion order for CFM International's advanced LEAP-1A engines to power 20 Airbus A319neo and 60 Airbus A320neo aircraft. At the same time, the airline has signed a Rate per Flight Hour (RPFH) agreement with CFM to support at total of 172 LEAP-1A engines.
Under the terms of the comprehensive services and support agreement, which is valued at approximately $3.9 billion over its 18-year term, CFM will guarantee engine maintenance costs on a dollar per engine flight hour basis.
"We believe that the LEAP-1A will be a great engine and a great asset in our operations," said Bryan Bedford, chairman, president, and CEO of Republic Airways. "The addition of this long-term support agreement adds another level of both convenience and predictability that will let us focus our attention on long-term profitable growth."
"We excited to enter into this new partnership with Republic Airways," said Jean-Paul Ebanga, president and CEO of CFM International. "We are honored by the level of trust they have put in our products. Our futures are inextricably linked, and we wouldn't have it any other way."
LEAP engines incorporate revolutionary technologies never before seen in the single-aisle aircraft segment. The new engine combines advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies, making it a major breakthrough in engine technology. The 15 percent better engine fuel efficiency, at current fuel prices, translates to as much as $1.6 million in fuel cost savings alone for customers per airplane, per year. LEAP technology will also achieve double-digit improvements in CO2 emissions and noise levels, all while providing the industry's best reliability and lowest maintenance costs.
LEAP is a product of CFM International, a 50/50 joint company between Snecma (Safran group) and GE. CFM is the world's leading supplier of commercial aircraft engines, with more than 23,000 delivered to 500+ operators around the globe.
About Republic Airways Holdings:
Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that
owns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Republic Airlines and Shuttle
America, collectively "the airlines." The airlines offer scheduled passenger service on
approximately 1,500 flights daily to 129 cities in 40 states, Canada, Costa Rica, and Mexico
under branded operations at Frontier and through fixed-fee airline services agreements with five
major U.S. airlines. The fixed-fee flights are operated under an airline partner brand, such as
AmericanConnection, Continental Express, Delta Connection, United Express, and US Airways
Express. The airlines currently employ approximately 11,000 aviation professionals and operate 275 aircraft.