CFM Signs 20-Year RPFH Agreement With Air Canada for LEAP-1B Engines

Canadian flag carrier Air Canada has signed a long-term Rate per Flight Hour (RPFH) agreement with CFM to support 122 LEAP-1B engines powering the airline’s 61 Boeing 737 MAX airplanes 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.

"Ensuring that our LEAP engines are maintained to the highest standards is an important element in getting the most from investment in our new 737 MAX fleet "said Klaus Goersch, Air Canada executive vice president and COO. "CFM has proven itself to be a great partner for Air Canada and we know that this agreement will help us keep maintenance costs in check."

The airline, which has been a CFM operator since 1990 and currently operates a fleet of 89 CFM56-powered aircraft, also has options and rights to purchase for an additional 96 LEAP-1B engines. The airline is scheduled to begin taking delivery in 2017.

"We are honored to remain an integral part of the Air Canada team," said Jean-Paul Ebanga, president and CEO of CFM International. "CFM is committed to providing industry-leading performance, as well as world class support."

"We appreciate the trust that Air Canada has put in us to help them achieve their long-term cost of ownership goals," said Kevin McAllister, president & CEO of CFM parent company GE Aviation Services. "We already have an incredibly strong partnership and will only get better with time."

Source: Safran S.A. (Paris: SAF.PA)
Date: Jun 17, 2015