AirAsia places RM10b US CFM LEAP-1A engine order

Kuala Lumpur: AirAsia Wednesday announced that it has ordered 200 additional CFM LEAP-1A engines, valued at US$2.7 billion (RM10.73 billion) at list price, to power its 100 new Airbus A321neo.The latest order would expand its LEAP engine fleet to nearly 730 engines.

"This order for the larger A321neo is an important element in our long-term growth and expansion strategy," AirAsia Group Chief Executive Officer (CEO), Tan Sri Tony Fernandes said in a statement Wednesday.

The order agreement was signed by Thai AirAsia CEO Tassapon Bijleveld, representing Fernandes, and President and CEO of CFM International Jean-Paul Ebanga in London.

Fernandes said choosing the right engine to power its aircraft was critical to the success of its strategy and the LEAP-1A was the obvious choice.

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"This engine has demonstrated the promised 15 per cent fuel efficiency and we are quite familiar with the reliability inherent in CFM products and the impact that this has on our operations," he said.

AirAsia, a pioneer in low-cost travel, has been a CFM customer for more than a decade.

AirAsia was an early LEAP customer and placed its initial order for 400 LEAP-1A engines – the largest in the aviation history at the time – to power the A320neo aircraft in June 2011.

The airline placed a follow-on order for 128 additional engines in 2013.

As the single largest Airbus A320 operator in the Asia-Pacific region, AirAsia operates a fleet of 170 CFM-powered Airbus A320s with 304 yet to be delivered.

AirAsia began operations in 2001 and has continued to see steady growth. Today, the airline and its subsidiaries operate close to 1,000 flights per day to more than 120 destinations in 24 countries.

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The LEAP-1A engine powered the first flight of the Airbus A321neo in February 2016.

The engine is on track for entry into service in mid-2016 on the initial A320neo and would provide operators with a 15 per cent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; a 50 per cent margin to new emissions regulations; a dramatically lower noise signature; and CFM's industry-leading reliability and low overall operating costs. – Bernama

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