Colorful Guizhou Airlines Signs LEAP-1A Rate-Per-Flight Hour Agreement
LE BOURGET, France — Colorful Guizhou Airlines has signed a Memorandum of Understanding for a 12-year Rate-Per-Flight-Hour Agreement with CFM International for the LEAP-1A engines that will power the airline’s future fleet of at least 15 leased Airbus A320neo aircraft. The agreement is valued at approximately $500 million U.S. at list price.
RPFH agreements are part of CFM’s portfolio of flexible aftermarket support offerings. Under the terms of the agreement, CFM Services guarantees maintenance costs for the airlines LEAP-1A engines on a dollar per engine flight hour basis.
Based in Guiyang, capital of Guizhou Province, Colorful Guizhou Airlines operates a fleet of regional aircraft trunk and regional routes for passenger service.
"Colorful Guizhou began working with CFM very early on. Expanding our operations into the narrow-body segment with CFM engines is critical to helping us achieve our goal of increasing our fleet to 25 aircraft by 2025,” said Shijiong Li, chairman of Colorful Guizhou.
“We are pleased that Colorful Guizhou Airlines has chosen to work with CFM Services for its aftermarket support,” said Gaël Méheust, president and CEO of CFM International. “Our long-term support strategy will help this airline get the most value from this very important asset over the long term.”
About Colorful Guizhou Airlines
Established in June 2015, Colorful Guizhou Airlines is one of the fastest-growing airlines among the newly established airlines. Since its inception on December 31, 2015, it has developed routes covering 31 cities in the provinces, North China, East China, South China, Central China and West China, and initially built a "Guizhou-based, nationwide-oriented" route network. Colorful Guizhou has always practiced the concept of "service first" and offers high-quality services to passengers.