Hainan Airlines, CFM Sign $4.2 Bn MoU for LEAP-1A Engines and Services

Expands 25-year relationship Coincided with state visit of French President Macron

Hainan Airlines Holding Co., Ltd, a subsidiary of HNA Group, has signed a Memorandum of Understanding (MOU) with CFM International for the purchase of LEAP-1A engines to power 55 Airbus A320neo aircraft, along with a long-term support agreement for Hainan Airlines Holding and its affiliates.  The MOU is valued at $4.2 billion U.S.  

Minister Zhong Shan of China Ministry of Commerce and Minister Jean-Yves Le Drian of French Ministry of Europe and Foreign Affairs and Minister Bruno Le Maire of French Ministry for the Economy and Finance witnessed the signing between Bao Qifa, Executive Chairman and CEO of Hainan Airlines Holding and Philippe Petitcolin, Chief Executive Officer of CFM parent company Safran.

"The majority of our fleet is powered by CFM engines," said Chen Feng, Chairman of the Board of HNA Group. "The products are performing great and we've been well supported by the CFM team. We believe that LEAP-1A engines will help us continue our profitability on our domestic and regional routes."

"We are very pleased that Hainan has selected the LEAP-1A engine for its A320neo fleet," said Philippe Petitcolin, CEO of Safran. "It is an honor to be part of this airlines continued growth and we offer our assurance that the entire team can look forward to the same high level of support they have come to expect from CFM as they introduce the LEAP-1A into service next year."

The LEAP engine entered commercial service in August 2016 and is providing its 30 operators with a 15 percent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; and lower noise and NOx emissions. To date, the fleet in service has logged more than 250,000 engine flight cycles and 500,000 engine flight hours while maintaining CFM's industry-leading reliability.

Source: Safran S.A. (Paris: SAF.PA)
Date: Jan 12, 2018