AviancaTaca signs agreement with CFM valued at $2.7 billion

  • Chooses LEAP -1A to power A320neos
  • Signs long-term service agreement for entire fleet

WEST CHESTER, Ohio – 11 March 2013

Colombia based AviancaTaca Holdings today announced that is has selected the advanced technology LEAP-1A engines to power 33 Airbus A320neo family aircraft, in addition to ordering CFM56-5B engines to power an additional 18 Airbus A320ceo family aircraft. The airline has also opted for a comprehensive engine maintenance service package. The agreement has a total combined value of $2.7 billion U.S. at list price.

AviancaTaca signed a 15-year RPFH (Rate per Flight Hour) agreement to support both the new CFM56 and LEAP engine fleets under which CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

Deliveries of the A320ceos are scheduled between 2014 and 2016, while the A320neos will be delivered in the 2017 to 2019 timeframe. The airplanes were originally announced in June 2011.

Avianca has been a CFM customer since 2006 and currently operates a fleet of 66 CFM56-5B-powered Airbus A320 family aircraft. The airline merged with TACA in 2010 to create one of the largest carriers in Latin America, transporting more than 20 million passengers in 2012. The new aircraft will be used for both fleet renewal and growth.

"We picked the LEAP-1A after a very thorough technical evaluation and we believe it is the right engine for our A320neo fleet," said Fabio Villegas Ramirez, CEO of AviancaTaca. . "The fuel efficiency it will bring coupled with the CFM standard for reliability and for maintenance cost, will make it a critical tool in implementing our long-term growth strategy."

"We are always honored when an airline of this stature continues to put its trust in CFM," said Jean-Paul Ebanga, president and CEO of CFM International. "We are looking forward to a great future with this team and to proving that their trust is well placed."

"This order is a continuation of what has already been a phenomenally good relationship," said Doug Izarra, sales general manager for CFM. "We are excited to bring all of the benefits of LEAP technology ─ double-digit improvements in fuel burn, noise, and carbon and NOx emissions with CFM reliability ─ to AviancaTaca. We believe these engines will prove to be real assets for the airline."

LEAP engines incorporate revolutionary technologies never before seen in the single-aisle aircraft segment. This engine combines advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies, making it a major breakthrough in engine technology. The 15 percent better engine fuel efficiency, at current fuel prices, translates to as much as $1.6 million in fuel cost savings alone for customers per airplane, per year. LEAP technology will also achieve double-digit improvements in CO2 emissions and noise levels, all while providing CFM56 levels of world-class reliability and low maintenance costs

LEAP and CFM56-5B engines are products of CFM International, a 50/50 joint company between Snecma (Safran) and GE. CFM, the world's leading supplier of commercial aircraft engines, has delivered nearly 25,000 engines to date. The LEAP-1A has been selected to power more than 50 percent of all A320neo orders to date for which an engine selection has been announced. The CFM56-5B engine powers every model of the Airbus A320 family and has been chosen to power nearly 60 percent of all A320 aircraft in service or on order.

***

About AviancaTaca Holdings:

AviancaTaca is one of the largest and fastest growing aviation groups in Latin America. It currently operates a combined fleet of more than 150 aircraft, the second largest fleet in Latin America. The group serves more than 100 destinations in Latin America, US, Canada, Caribbean region and Europe, and has 4 major hubs in Bogota, San Salvador, Lima and San José de Costa Rica.

For more information, contact:
Jamie Jewell
T: 513.552.2790
M: 513.885.2282
jamie.jewell@ge.com

Rick Kennedy
T: 513.243.3372
M: 513.607.0609
rick.l.kennedy@ge.com

Antoinette Menard
T: 33.1.69.87.09.28
M: 33.6.74.78.10.65
antoinette.menard@snecma.fr

www.cfmaeroengines.com