No.208

Jiuyuan Airlines signed USD 3.7 billion order with CFM
ReleaseDate: 2014-08-20

On July 14, local time, the biennial Farnborough Airshow opened in Farnborough, a small town southwest of London. During the Airshow period, Jiuyuan Airlines ordered a total of 105 CFM-56-7B engines and LEAP-1B engines from CFM International Company, which would provide power and backup for the 50 Boeing 737-800 and the new generation 737 MAX aircrafts that it purchased from Boeing in May this year. Meanwhile, it also signed a long-term service agreement. Based on catalogue prices, total value of this order is worth USD 3.7 billion.

At the agreement-signing ceremony, Wang Junjin, Chairman of JuneYao Group, signed the agreement on behalf of Jiuyuan Airlines, Wang Junjun said: “JuneYao Airlines has already very rich CFM engine operation experience, and we look forward to seeing further consolidation in the cooperation relation between both sides with the launching of Jiuyuan Airlines,” Wang also said, “we are very confident about CFM engine’s reliability and operation economy, and we look forward to seeing the new LEAP engine join our fleet. CFM engine’s superior fuel efficiency and low maintenance cost are crucial for airline companies to keep operating cost under control.”

Allen Paxson, Executive vice president of CFM International, welcomed Jiuyuan Airlines to join the big family of CFM users, and expressed full confidence toward the upcoming cooperation between two sides.

CFM International is an equal-share-holding joint venture between Snecma (Safran Group) and GE; as a world-leading supplier of engines for civilian aircrafts, up till now CFM has delivered more than 26, 600 engines.

This time, the LEAP-1B engine ordered by Jiuyuan Airlines is the only power device of Boeing 737 MAX aircraft. LEAP engine has 15% better fuel efficiency than today’s best CFM engine, meanwhile it can minimize carbon dioxide emission by 15%, and significantly reduce engine noise and emission. Also, it has inherited CFM’s extraordinary reliability and low maintenance cost. On the other hand, the CFM-56-7B engine will provide power for Jiuyuan Airlines’ Boeing 737-800 aircrafts. CFM adopts advanced computer coding and 3D design technology to improve the blade profile of high and low pressure turbine, so as to promote engine’s performance. What’s more, it also accomplishes relatively low maintenance cost by improving engine’s durability and reducing component numbers.

It has been learned that in March this year, with approval from the Civil Aviation Administration of China, Jiuyuan Airlines Co., Ltd was approved to be established in Guangzhou, with Guangzhou Baiyun International Airport as its base airport. Scheduled to start operation in August this year, it will mainly operate domestic aviation passenger and cargo transport business. By adopting low cost model to serve the public to meet transport needs, offering links to South Asia, and targeting at South Asia, Southeast Asia, and Northeast Asia markets, Jiuyuan Airlines will provide safe, inexpensive, and fast travel options to the vast number of passengers in Guangzhou and even the Pearl River Delta region.

Wang Junjin (front left) and Allen Paxson, Executive Vice President of CFM International (front right) together signed the agreement.