Arkia signs $200 million Leap-1A support agreement
LE BOURGET, France — 21 June 2017 — Arkia Israeli Airlines (Arkia) has signed a long-term Rate Per Flight Hour agreement with CFM International to support is fleet of advanced LEAP-1A engines that will power four Airbus A321neo. The engine order was announced in April 2017; the aircraft order was announced in July 2012.
Under the terms of the 15-year agreement, valued at $200 million U.S. at list price, CFM will guarantee the maintenance costs of the LEAP-1A engines on a dollar per flight hour basis.
Based in Tel Aviv, Israel, Arkia is the country's second largest airline. As a new CFM customer, it will be the first airline to operate the LEAP engine in Israel.
"We are pleased with our choice of the LEAP-1A engine and we are delighted to now extend the relationship to the long-term support of that fleet," said Nir Dagan, President & CEO of Arkia. "Being able to have predictable maintenance costs is an important element in our long-term strategy and we are happy to have chosen CFM as our partner."
"We look forward to building a great relationship with Arkia," said Gaël Méheust, president and CEO of CFM International. "We believe they will be very happy with the benefits that the LEAP engine will bring to their operations and by the very high level of support that the CFM team will provide."
The LEAP-1A engine entered commercial service in August 2016 and is providing its fourteen operators with a 15 percent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; lower noise and emissions; and CFM's industry-leading reliability and low overall operating costs. To date, the fleet in service has logged more than 77,000 engine flight cycles and more than 145,000 engine flight hours.
About Arkia Israeli Airlines
Arkia Israeli Airlines Ltd. was founded in 1950 to establish an air link between Eilat and the northern part of Israel. Since 2006, the Nakash brothers (Avi, Joseph and Ralph), owners of the multibillion investment conglomerate Jordache Enterprises, have been the majority shareholders. Arkia carries more than 1,600,000 passengers a year on international and domestic routes. In recent years, the company has expanded its business operations to include outgoing & incoming tourism packages, hotels, maintenance services for business aviation and more. The airline operates in 34 countries around the world, providing scheduled and charter services throughout Europe, Africa and the Mediterranean.
About CFM International
The LEAP engine is a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. This engine has experienced the fastest order ramp up in commercial aviation history and CFM has received orders for a total of more than 12,500 LEAP engines across all three models through May 2017. For more information, visit us at www.cfmaeroengines.com or follow us on Twitter @CFM_engines.