Southwest Airlines Signs GE OnPoint Solution Agreement on CFM56-7B Engines

July 10, 2012

FARNBOROUGH AIR SHOW -- Southwest Airlines, the largest commercial customer for CFM56 engines, signed a 20-year OnPointSM solution agreement with GE Aviation for the maintenance, repair and overhaul of 156 CFM56-7B engines, that will power 78 Boeing 737-800 Next Gen aircraft. The OnPoint agreement is valued at more than $1 billion (USD) over the life of the agreement.

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

"Southwest is very pleased to extend our strong partnership with CFM through this agreement," said Brian Hirshman, Southwest's Senior Vice President Technical Operations. "This deal is unique in many ways, and it will help ensure Southwest maintains the lowest maintenance costs and supports the daily operation in the most efficient manner possible."

"Southwest Airlines has worked with CFM International for more than 30 years since its first order for CFM56 engines, and GE has been servicing Southwest's CFM56 engine fleet for many years. This new agreement demonstrates the carrier's continued confidence in GE Aviation's maintenance, repair and overhaul capabilities," said Kevin McAllister, vice president and general manager of Global Sales at GE Aviation.

"Southwest Airlines' continued faith in our service offering is a testament to the quality work GE employees provide, and we look forward to continuing to provide the highest level of service and support to Southwest Airlines," said Paul McElhinney, president and chief executive officer of GE Aviation's Services organization.

OnPoint solutions are customized service agreements tailored to the operational and financial needs of each customer for any size fleet. These agreements are designed to help lower the customers' cost of ownership and maximize the use of their assets. Backed by GE's global support network, OnPoint services may include overhaul, on wing support, new and used-serviceable parts, component repair, technology upgrades, engine leasing, integrated systems support and diagnostics and integrated systems.

GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.