Virgin America has signed Rate per Flight Hour (RPFH) agreement with CFM International to support 60 LEAP engines the airline ordered to power its new Airbus A320neo aircraft.
Under the terms of the comprehensive services and support agreement, which is valued at approximately $400 million over its 12-year term, CFM will guarantee engine maintenance costs on a dollar per engine flight hour basis.
Virgin America is the launch customer for CFM's advanced new engine scheduled to enter service on the A320neo in 2016.
LEAP engines are a product of CFM International (CFM), a 50/50 joint company between Snecma (Safran group) and GE. The new airplanes will begin delivery in 2016.