AirAsia selects CFM56-5B to Power A320s in US$750 Million Order

AirAsia has finally unveiled its engine choice for its 100-aircraft Airbus A320 order (60 firm, 40 purchase rights). The airline has selected CFM International’s CFM56-5B engine to power the A320s scheduled to begin joining the low cost airline's fleet as early as December 2005. The purchase agreement for the firm engine order, which covers a total of 120 engines plus 9 spares, is valued at approximately US$750 million at list price.

An official signing ceremony was held between both parties at the Paris Air Show at Le Bourget. The purchase agreement signed between , and  Berhad, was witnessed by the Deputy Prime Minister of Malaysia, YAB Dato’ Sri Haji Mohd Najib bin Tun Haji Abdul Razak and the Minister of Transport Malaysia, YB Dato’ Sri Chan Kong Choy. 

CFM International (CFM), a 50/50 joint company between Snecma and General Electric Company, is one of the world's leading suppliers of commercial aircraft engines, with more than 15,000 in service worldwide.

“We are very excited by AirAsia’s selection of the CFM56-5B to power its future A320 fleet,” said Pierre Fabre, President and Chief Executive Officer of CFM International.

AirAsia which began operations in 2001 today operates a fleet of 26 Boeing 737-300s powered by the CFM56-3 engines, serving more than 51 domestic Malaysian and regional routes to Thailand, Indonesia, China, Singapore, and the Philippines, from hubs in Kuala Lumpur and Johor Bahru, in Malaysia, Bangkok (Thailand) and Jakarta (Indonesia).

AirAsia will operate a mixed fleet during the transition from Boeing 737-300s to the Airbus A320. The 180–seat A320s will enter AirAsia's fleet from 2005 until 2011.

“We believe in aligning ourselves with the best. While cost is of an essence to the nature of our business, there’s no denying that the beauty of the CFM56 engines lies not only with its high reliability and long on-wing life, but of its ability to complement the A320,” said Tony Fernandes, Group Chief Executive Officer of AirAsia. “These attributes, coupled with CFM’s reputation as one of the leading suppliers of commercial aircraft engines, would only serve to drive our cost structure downwards and effectively give consumers a very good product and value for their money.”

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