News
Lion Group places US$5.5 billion CFM engine order
April 6th 2018
Transportation Partners, the leasing arm of Lion Group, has finalized a US$5.5 billion order for 380 CFM International LEAP-1A engines to power its incoming A320neo and A321neo fleets. Read More »
In addition to the LEAP-1As, Lion Group has also ordered 544 LEAP-1B engines to power its on-order B737 MAX 8, MAX 9 and MAX 10 aircraft, of which 10 are already in service with Lion Air.
Having ordered a total of 924 LEAP engines at a list price of US$13.4 billion, Indonesia’s Lion Group is the best LEAP customer in the world. “CFM has been a great partner in supporting the growth of our fleet operation since the start of our journey,” said Edward Sirait, president and CEO of Lion Air Group.
“Our choice to use LEAP engines to power our A320neo fleet and Boeing 737Max is the right decision,” he continued. “The new fleet of A320neo and Boeing 737 Max are critical elements for our long-term growth that will ensure Lion Air Group’s position as the leading airline in the region. We are optimistic that these engines will give us the highest efficiency and reliability to support Lion Air Group’s growth in the region,” Siriat said.
The Lion Air Group has more than 200 B737 MAXs on order, including 50 of the MAX 10, the hitherto largest variant which is yet to fly, as well as 113 A320neo and 65 A321neo, according to Airbus’ order book.
“This is a great new milestone for what has always been a great partnership,” said Chaker Chahrour, vice president of global sales and marketing for CFM parent, GE Aviation. “Lion Air has already seen the operational benefits of the LEAP-1B engine and understand what a great asset the LEAP-1A will be to its portfolio. Adding an expanded MRO aspect will take this relationship to a whole level. We are excited to see what the future brings,” Chahrour added.
This latest agreement between Lion Group and CFM also includes an extension of the 25-year Material Service Agreement (MSA) for CFM56-7B, CFM56-5B, and LEAP-1B engines originally signed in 2014 and expands its scope to include the LEAP-1A engine.
CFM will also provide MRO services to Lion Group’s CFM56 and LEAP engines until Lion Group’s own shop, Batam Aero Technic in Batam, Indonesia, is completed. CFM has been supporting the development of Lion Group’s new engine maintenance and test cell facility since 2016, providing project management and expert advice starting from design, construction and commissioning for the new facility. When completed, BAT will have maintenance and overhaul capability for both CFM56 and LEAP engines. CFM will provide CFM56 and LEAP engine overhaul training with knowledge transfer that supports the development of qualified local MRO specialists.
Lion Group’s Don Mueang-based Thai Lion Air became the world’s launch operator of the B737 MAX 9 in March. The group’s Malaysian subsidiary, Batik Air, took delivery of the world’s first MAX 8 last May.
