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Contracts > Engines
July 2015

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AFI KLM E&M and TNT Airways have signed a flight-hour agreement covering the support of the GE90-110B engines powering the airline’s Boeing 777 freighter fleet. AFI KLM E&M is now providing TNT Airways with a dedicated, integrated support programme taking in the entire engine maintenance service chain, from removal to reinstallation, including shop visits, on-site work, routine inspections, line maintenance support, engineering, on-wing engine performance monitoring, and, if needed, the supply of spare engines.

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AFI KLM E&M has signed an exclusive long-term engine support contract with Air China Cargo, covering its fleet of Boeing 777 freighters. Six of the projected eight-strong fleet are already in revenue service and two more are due to join the fleet in September. The contract extends the 2014 partnership deal between Air China and AFI KLM E&M for exclusive full support of the carrier’s 777 aircraft engines.

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CFM has signed a long-term rate-per-flight-hour (RPFH) agreement with Air Canada to support 122 LEAP-1B engines powering the airline’s 61 Boeing 737 MAX aircraft it ordered in 2014. Under the terms of the 20-year agreement, CFM will guarantee maintenance costs for the entire Air Canada LEAP-1B fleet on a rate per engine flight hour basis.

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CFM International and Zhejiang Loong Airlines have signed a long-term rate-per-flight-hour (RPFH) agreement to support its fleet of 20 LEAP-1A engines. Under the terms of the 15-year agreement, which is valued at $333 million, CFM will guarantee maintenance costs on a dollar per engine flight hour basis. Zhejiang Loong Airlines, based in Hangzhou in Eastern China, began commercial operations in December 2013 with two CFM56-5B-powered Airbus A320 aircraft, and has since added eight additional aircraft to its fleet. A second RPFH agreement was signed for the fleet of 17 CFM56-5B engines. The 12-year agreement is valued at $138 million.

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GE Aviation and Myanmar National Airlines have signed an exclusive OnPoint solution agreement that covers 12 CFM56-7B engines that will power the airline’s new fleet of Boeing 737 NG aircraft. The agreement is valued at more than $60 million over its life.

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GE Aviation and the Qantas Group have entered into a multi-year OnPoint solution agreement covering the GEnx-1B engines that power Jetstar’s fleet of Boeing 787 Dreamliner aircraft. The agreement is valued at more than $550 million over its life.

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GE Aviation has signed a five-year extension on its OnPoint solution agreement with Copa Airlines covering more than 64 CFM56-7B engines that power Boeing 737-700/800 aircraft. The agreement is valued at more than $250 million over the life of the extension. With this agreement, Copa Airlines has its entire engine fleet of CFM56-7B and CF34-10E engines covered under GE’s OnPoint solution agreements.

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GE Aviation has signed an eight-year OnPoint solution agreement with Air Transat for the overhaul of its fleet of CFM56-7B engines that power its Boeing 737-800 NG aircraft. The OnPoint solution agreement is valued at more than $25 million over its life.

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GE Aviation has signed SkyWest Airlines to an 18-year OnPoint solution agreement for material to support its 86 CF34-8E engines that power its EMBRAER 175 aircraft. The agreement is valued at more than $550 million over its life.

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GE Aviation is offering an innovative CF34 engine management solution to help FMI Air in Myanmar. Under the terms of the deal, GE is enabling the carrier to enter service with newer engines on its Bombardier CRJ 200 that offer improved economics and reliability. There is a full suite of offerings specifically aimed at the mid-life to mature fleet market space, including engine and module exchanges, green time leases and Firm Fixed Price Plus (FFP+) time and materials overhauls in which GE eliminates scrap rate exclusions. These solutions also help optimize LLP lives and align standards with the shop visit schedule. Finally, GE’s used assets have a comprehensive back-to-birth documentation that could help enhance the residual value of the asset.

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