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Etihad and CFM in $2.8b engine deal

Maintenance costs on a dollar per engine flight hour basis guaranteed with agreement

By Abdul Basit

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Published: Tue 19 Nov 2013, 10:28 PM

Last updated: Fri 3 Apr 2015, 4:21 AM

Etihad Airways continued agreement-signing on the second day of the Dubai Airshow as the carrier selected CFM International’s advanced Leap-1A engine worth $2.8 billion to power its 26 Airbus A321neo scheduled to begin delivery in 2018.

To support the new fleet, the Abu Dhabi-based airline has signed a 15-year rate per flight hour agreement, under the terms of which CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

“Etihad Airways prides itself on operating modern, state-of-the-art and highly-efficient aircraft, with the Airbus A320 family at the heart of our narrow-body fleet,” said James Hogan, president and chief executive officer of Etihad Airways.

“Through the introduction of the brand new Airbus A320neo family aircraft, we will benefit from even lower fuel consumption and environmental impact on short-haul and medium-haul flights. Much of these operational improvements will derive from the advanced Leap-1A engine, which has been meeting all performance targets,” Hogan said.

CFM recently completed ground testing of the first Leap engine, accumulation 310 hours and more than 400 cycles over a five-week test plan. The foundation of the Leap engine is heavily rooted in advanced aerodynamics, environmental and materials technology development programmes. It will provide 15 per cent better fuel consumption and an equivalent reduction in carbon dioxide emissions compared to today’s best CFM engine, along with dramatic reductions in engine noise and emissions. All this technology brings with it CFM’s legendary reliability and low maintenance costs.

Jean-Paul Ebanga, president and chief executive of CFM International, said: “We are happy to welcome Etihad as a CFM customer. In just 10 years, this airline has built a reputation for excellence in every facet of its business, and we are honoured to become part of this team.”

“We are excited that Etihad chose to power its new A320neo fleet with the Leap engine,” said Gaël Meheust, vice-president of sales for CFM International. “We think this engine is going to be the best we’ve ever built and Etihad will realize the benefits from day one — lower fuel burn, lower noise and emissions, all with CFM’s legendary reliability and low cost of ownership.”

— abdulbasit@khaleejtimes.com