The world's third largest aircraft leasing company, SMBC Aviation Capital, has placed orders with CFM International for ten LEAP-1A engines that will power five additional Airbus A320neo aircraft on order for the lessor.
The deal has been valued at US$140 million AT current list prices and is a follow-on to SMBC Aviation Capital's initial LEAP-1A order for 60 engines, announced at the 2015 Paris Air Show.
"We are very pleased with the performance of the LEAP-1A engine during its ground and flight test program," said Peter Barrett, CEO of SMBC Aviation Capital. "This engine is on track to deliver the reliability our customers have come to expect from CFM and we look forward to introducing it into our portfolio."
The Dublin-based aircraft lessor has a fleet of more than 350 aircraft powered by CFM56 and LEAP engines in service or on order. "SMBC Aviation Capital has a large portfolio of CFM-powered aircraft today and we are obviously pleased by the continued confidence they show in our products," said Jean-Paul Ebanga, president and CEO of CFM International.
"We are proud of the positive impact our engines have had on the long-term profitability of their airline customers and look forward to growing this important relationship well into the future."
As of March 31 2016, SMBC Aviation Capital owns, manages and has commitments for 665 aircraft valued at $16 Billion. Slated for entry into service later this year, the LEAP-1A engine will deliver a 15 per cent improvement in fuel efficiency.
As of April 30th, CFM International had received orders and commitments for in excess of 10,500 LEAP engines.