Southwest Orders 55 Additional CFM56-3 Advanced Upgrade Kits

October 18, 2004

EVENDALE, OHIO October 18, 2004 Southwest Airlines has placed an order for 55 additional CFM56-3 Advanced Upgrade kits at a value of approximately $66 million, bring the airline's total order to 355 kits.

CFM56-3 engines are a product of CFM International, a 50/50 joint company between Snecma Moteurs (Safran Group) and General Electric Company.

Southwest launched the Advanced Upgrade package in 2001 with an order for 300 kits; 225 have been delivered today. When the additional kits are installed, Southwest will have upgraded approximately 80 percent of its 737 Classic fleet.

More than 4,200 CFM56-3 engines have been produced for the Boeing 737-300/-400/-500 series, representing a tremendous long-term market potential for the engine upgrade package. The upgrade is installed during normal overhaul and provides significant benefits, including: up to an 1.8 percent improvement in specific fuel consumption, as well as up to 22 degrees additional exhaust gas temperature (EGT) margin, which reduces maintenance costs through longer on-wing life.

Earlier this year, CFM launched two other kit options: the Enhanced Performance kit and the Enhanced Durability kit, giving customers more flexibility in managing maintenance costs The Enhanced Performance kit includes the 3-D aero HPC blades and vanes and provides increased exhaust gas temperature (EGT) margin that translates to as much as 40 percent longer time on wing, depending on airline operations. The Enhanced Durability kit reduces scrap rate by 50 percent, thus reducing maintenance costs. This kit is available now and CFM has received four orders to date.

Earlier this year, KLM Royal Dutch Airlines ordered 31 Advanced Upgrades; Air China has ordered five.

Jamie Jewell

+1 513.885.2282

Charles Soret

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Perry Bradley

+1 513 375 2597

Talal Ahmed Almahmood

+973 173 3819