Hainan Airlines, CFM sign $4.2 billion MOU for LEAP-1A engines and services
WEST CHESTER, Ohio — 11 January 2018 — Hainan Airlines Holding Co., Ltd, a subsidiary of HNA Group, has signed a Memorandum of Understanding (MOU) with CFM International for the purchase of LEAP-1A engines to power 55 Airbus A320neo aircraft, along with a long-term support agreement for Hainan Airlines Holding and its affiliates. The MOU is valued at $4.2 billion U.S.
Minister Zhong Shan of China Ministry of Commerce and Minister Jean-Yves Le Drian of French Ministry of Europe and Foreign Affairs and Minister Bruno Le Maire of French Ministry for the Economy and Finance witnessed the signing between Bao Qifa, Executive Chairman and CEO of Hainan Airlines Holding and Philippe Petitcolin, Chief Executive Officer of CFM parent company Safran.
"The majority of our fleet is powered by CFM engines," said Chen Feng, Chairman of the Board of HNA Group. "The products are performing great and we've been well supported by the CFM team. We believe that LEAP-1A engines will help us continue our profitability on our domestic and regional routes."
"We are very pleased that Hainan has selected the LEAP-1A engine for its A320neo fleet," said Philippe Petitcolin, CEO of Safran. "It is an honor to be part of this airlines continued growth and we offer our assurance that the entire team can look forward to the same high level of support they have come to expect from CFM as they introduce the LEAP-1A into service next year."
The LEAP engine entered commercial service in August 2016 and is providing its 30 operators with a 15 percent improvement in fuel efficiency, with an equivalent reduction in CO2 emissions; and lower noise and NOx emissions. To date, the fleet in service has logged more than 250,000 engine flight cycles and 500,000 engine flight hours while maintaining CFM's industry-leading reliability.
About Hainan Airlines
Founded in 1993 in Hainan Province, Hainan Airlines Holding is one of the fastest developing airlines in China. With its affiliated airlines, it is committed to providing passengers with holistic, seamless and high-quality service. With a fleet of 560 aircraft, mainly composed of Boeing 737s, 787s and Airbus 320s and 330s，Hainan Airlines Holding operates an extensive network covering China, Asia, Europe, North America and Oceania, with more than 1,400 domestic and international routes flying to more than 100 cities worldwide.
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 and commitments for a total of more than 14,000 LEAP engines across all three models. For more information, visit us at www.cfmaeroengines.com or follow us on Twitter @CFM_engines.