CFM International and Hainan Airlines, China’s fourth largest airline group, have finalized an agreement for CFM56-5B engine to power 42 new Airbus A320 family aircraft. The entire agreement is valued at approximately $1.2 billion U.S. at list price, including the firm engine order and a long-term services and support agreement. The airline is scheduled to begin taking delivery in 2012. The MOU was originally announced at the Zhuhai Air Show in November 2010.
To support the new CFM56-5B-powered A320 fleet, Hainan has also signed a long-term RPFH (Rate per Flight Hour) agreement with CFM to provide comprehensive engine maintenance service. Under the terms of this agreement, CFM will guarantee maintenance costs on a dollar per engine flight hour basis.
