Pegasus seals $4.3 billion deal with CFM
DUBAI, U.A.E. — Pegasus Airlines has finalized its order for CFM International's advanced LEAP-1A engine to power 100 Airbus A320neo/ A321neo aircraft. The agreement is valued at approximately $4.3 billion U.S. at list price, including the long-term service agreement.
Under the terms of the 20-year Rate per Flight Hour (RPFH) maintenance agreement, CFM will guarantee maintenance costs on a dollar per engine flight hour basis. The engine selection was announced in July 2013 and the airline is schedule to begin taking delivery of its new aircraft in 2016.
The Istanbul-based low cost airline has been a CFM customer since it began operations in 1990. Today, the airline operates a fleet of 45 CFM-powered Boeing 737 aircraft on scheduled routes to 76 domestic and international destinations throughout Europe, Russia, Central Asia, Caucasus, the Middle East, and Africa.
"We are pleased to have selected CFM to provide LEAP engines for our new Airbus A320neo and A321neo aircraft until 2022, in addition to the 20-year maintenance agreement," said Sertaç Haybat CEO of Pegasus Airlines. "This will enable us to keep what is arguably the most significant cost for airlines — engine maintenance costs— in check by making these costs more predictable.
"With this order, we have now increased our total Airbus fleet investment to $16.3 billion U.S. — $12 billion for 100 new aircraft and $4.3 billion for the engines and long-term service agreement," Haybat continued. "Based on the delivery schedule for the fleet, our partnership with CFM will continue at least until the year 2042. Together, we are witnessing the signing ceremony for a collaboration that is set to last for another 30 years."
"This agreement marks an important milestone in our already 20-year relationship with Pegasus," said Pierre Fabre, president & CEO of CFM parent company Snecma (Safran). "Beyond the quality of the LEAP product comes our unwavering commitment to keep our promises and deliver the kind of performance, reliability, and operating economics Pegasus has come to rely on from CFM."
The first LEAP-1A engine to test started for the first time on September 4, 2013, two days ahead of the schedule set in early 2010. The engine performed flawlessly and logged more than 300 hours and 400 cycles before coming off the test stand. The next major milestone is the icing tests that will take place in 2014. CFM is performing the test early, more than one year ahead of the engine certification timeline, to ensure that any potential issues are identified well in advance.
The foundation of the LEAP engine is heavily rooted in advanced aerodynamics, environmental, and materials technology development programs. It will provide 15 percent better fuel consumption and an equivalent reduction in CO2 emissions compared to today's best CFM engine, along with a 50 percent reduction in oxides of nitrogen emissions, and up to a 15 decibel reduction in noise. All this technology brings with it CFM's legendary reliability and low maintenance costs.
LEAP engines are a product of CFM International, a 50/50 joint company between Snecma (Safran) and GE and the world's leading supplier of commercial aircraft engines. The company has delivered more than 25,600 engines to more than 530 operators around the globe. The CFM56 fleet has logged more than 675 million flight hours in the past 30 years as the most reliable engines in the air.
About Pegasus Airlines (www.flypgs.com)
Pegasus joined the airline sector with the launch of its charter flights in 1990 and has been owned by ESAS Holding since 2005. It is Turkey's leading low-cost carrier, offering economically priced flights on short- and medium-haul routes. Believing that "everyone has the right to fly," Pegasus offers its guests great value, on-time flights and the newest aircraft under the auspices of its low-cost model. Pegasus flies scheduled service to 45 international and 31 domestic destinations, flying passengers to 76 destinations in 30 countries. Pegasus was named "the fastest growing airline" of Europe's 25 largest airlines in terms of seat capacity for both 2011 and 2012 by the Official Airline Guide (OAG). In 2012 Pegasus placed the single largest aircraft order in Turkish civil aviation history, valued at approximately US$12 billion based on (list prices) at the time of delivery for 100 new Airbus aircraft, of which 25 are optional. On 26 April 2013, Pegasus Airlines listed 34.5% of its stock on the Istanbul Stock Exchange with a public offering and began trading with the code 'PGSUS'
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