Alaska Airlines Signs $500 M Support Agreement

Alaska Airlines and CFM International have signed a nine-year Rate Per Flight Hour (RPFH) maintenance agreement to support 128 CFM56-7B engines that power the airline’s s fleet of Boeing Next-Generation 737-800 aircraft.  The agreement, which includes spare engines, is valued at nearly $500 million U.S. at list price.

Rate per Flight Hour agreements are part of CFM’s portfolio of flexible aftermarket support offerings.  After an extensive market Request for Proposal (RFP), CFM was selected to be Alaska’s CFM56-7B maintenance provider.  The companies worked tirelessly to negotiate a unique contract that, throughout the term of which CFM will provide complete engine maintenance and support, including providing lease engines, transportation, and material services.

Alaska Airlines is a long-time CFM customer and was the launch customer for the CFM56-7B powerplant for the Boeing Next-Generation 737-900 aircraft.  Today, the airline operates a CFM-powered fleet of nearly 220 Boeing 737 and Airbus A320 aircraft.

“We are pleased to continue our long-term relationship with Alaska Airlines,” said Gaël Méheust, president and CEO of CFM International.  “We appreciate the high level of confidence this agreement shows in CFM and in our ability to continue to support their fleet over the long term.”

Source: CFM International
Date: Nov 6, 2017