July 11, 2012
FARNBOROUGH, England -- Dublin, Ireland based aircraft leasing company Avolon today announced that it plans to order LEAP-1B engines to power 15 Boeing 737 MAX aircraft, along with CFM56-7BE engines to power 10 Next-Generation 737s. The total engine value is approximately $585 million U.S. at list price.
Avolon has been a CFM customer since its launch in 2010 and already owns a fleet of 56 CFM-powered aircraft.
"This expansion of our relationship with CFM builds on many years of successful partnership. Not only does CFM build world-class engines, they also listen to and understand their customers and always respond in a timely, professional and creative way. They are a pleasure to deal with and we look forward to growing the relationship further," said John Higgins, president and chief commercial officer of Avolon.
"We are excited to expand our relationship with this dynamic and successful leasing company," said Jean-Paul Ebanga, president and CEO of CFM International. "Avolon's focus is on modern, fuel-efficient airplanes and we are happy to be part of the team that provides them."
"The CFM56-7BE and LEAP-1B are going to provide the kind of operating economics that Avolon and its customers are looking for," said Gael Meheust, vice president of Sales for CFM International. "The company has shown impressive growth in a very short time. They have a very clear strategy that they are executing flawlessly and we see very good things ahead for them, and CFM will be with them every step of the way."
The LEAP-1B, which is the result of an exhaustive six-year collaboration effort with Boeing, is the exclusive powerplant for the new 737 variant, with the engine uniquely optimized for the airplane. The 737 MAX continues a 30-year relationship between CFM and Boeing; CFM engines have been the sole powerplant for all 737 aircraft sold since 1981.
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.
As a result, operators of the 737 MAX will achieve 13 percent lower fuel burn compared to today's best CFM56-powered 737; an equivalent reduction in carbon emissions; a 50 percent reduction in NOx emissions versus current ICAO CAEP/6 requirements; a 75 percent reduction in the aircraft noise footprint; all while maintaining the benefits of CFM's legendary reliability and low maintenance costs.
LEAP engines are a product of CFM International a 50/50 joint company between Snecma (Safran group) and GE.
Avolon is a leading global aircraft lessor, providing aircraft leasing and lease management services to airlines and aircraft investors worldwide. Avolon has raised US$4.6 billion in capital since launch, demonstrating the investment appeal and compelling long term growth prospects of the business and the strength of the management team assembled.
Avolon's primary asset focus is on young, fuel-efficient, single-aisle aircraft, such as the high-demand Airbus A320 family and Boeing 737NG family. The company also invests selectively in best-in-class twin-aisle aircraft, such as the Airbus A330 family and Boeing 777 family. Avolon's portfolio comprises a balance of new aircraft ordered directly from Boeing and Airbus, together with young aircraft acquired through sale and leaseback transactions. The result is a risk-balanced portfolio of quality assets and a fully-rounded product offering for customers.