Transportation Partners, the leasing arm of Lion Group, and CFM International have finalised a $5.5bn order for 380 LEAP-1A engines to power Airbus A320neo/A321neo aircraft.
Transportation Partners — the leasing arm of Lion Group, Indonesia's largest privately-owned airline — and CFM International have finalised an order for 380 LEAP-1A engines to power Airbus A320neo/A321neo aircraft. The final engine order, which is valued at $5.5bn at list price was originally announced in February 2016, while the aircraft order was announced in March 2013.
In addition to the LEAP-1A engines, Lion Group has also ordered 544 LEAP-1B engines to power its Boeing 737 MAX 8, MAX 9, and MAX 10 aircraft, of which 10 are currently in service with Lion Air. With a fleet of 924 LEAP engines in service or on order at a total value of $13.4bn at list price, Lion Group is the largest LEAP engine customer in the world.
The agreement also includes an extension of the 25-year Material Service Agreement (MSA) for CFM56-7B, CFM56-5B, and LEAP-1B engines originally signed in 2014 and expands its scope to include the LEAP-1A engine.
CFM will also provide MRO services to Lion Group's CFM56 and LEAP engines until their own shop, Batam Aero Technic (BAT) in Batam, Indonesia, is completed. CFM has been supporting the development of Lion Group's new engine maintenance and test cell facility since 2016, providing project management and expert advice starting from design, construction and commissioning for the new facility.
When completed, BAT will have maintenance and overhaul capability for both CFM56 and LEAP engines. CFM will provide CFM56 and LEAP engine overhaul training with knowledge transfer that supports the development of highly-qualified local engine MRO specialists.
Lion Group, based in Jakarta, Indonesia, has been a CFM customer since the year 2000 and its entire single aisle narrow-body fleet, in service or on order, is powered by CFM engines.
Transportation Partners was formed in 2012 and currently leases aircraft mainly to Lion Group airlines.