CALC Places $500 Million CFM56-5B Engine Order

WEST CHESTER, Ohio - Hong Kong-based China Aircraft Leasing Company (CALC) has announced its selection of CFM56-5B engines to power 25 new Airbus A320 family aircraft. The firm engine order is valued at $500 million U.S. at list price and deliveries are scheduled between 2014 and 2016.

The aircraft are part of CALC's first-ever new aircraft order; the company announced an agreement with Airbus for 36 A320 family aircraft in 2012.

"CFM56 engines have an outstanding reputation in the industry and we are pleased that they will power the majority of our first new aircraft buy," said Dr. Poon, CEO of CALC. "Our customers value the reliability and low cost of ownership the CFM56-5B provides, as well as the world class support they receive. We believe that forming this strategic partnership with CFM will be instrumental in helping us expand our business globally."

The aircraft will be initially placed with Chinese lessees, but CALC plans to diversify the portfolio and expand into the rest of Asia, as well as building its presence in Europe and the United States.

"We are honored to welcome CALC to the CFM family," said Jean-Paul Ebanga, president and CEO of CFM International. "Our continual investment in the CFM56 product line has made it the industry leader it is today. The CFM56-5B gives operators a significant advantage in terms of overall cost of ownership and they will have a positive impact on the profitability of CALC's leasing customers."

CALC's new A320 aircraft will be powered by the CFM56-5B Performance Improvement Package engine, which has been the production configuration since October 2011. The PIP improvements, which provide a 0.5% improvement in fuel burn, include hardware changes to the core, including new high-pressure turbine blade, as well as manufacturing changes to the fan and compressor blades and vanes to improve performance retention. The engine also features fewer parts to help lower maintenance costs.

CFM 56-5B engines are a product of CFM International, a 50/50 joint company between Snecma (Safran) and GE. CFM, the world's leading supplier of commercial aircraft engines, has delivered nearly 25,000 engines to date. The CFM56-5B engine powers every model of the Airbus A320 family and has been chosen to power nearly 60 percent of all A320 aircraft in service or on order.

About China Aircraft Leasing Company

China Aircraft Leasing Company Limited (CALC), which was founded in 2006, has headquarters in Hong Kong, along with representative offices in Beijing, Shanghai, Shenzhen and Tianjin in China, as well as in France and Ireland. The company has aggressive expansion plans and expects to grow its fleet to 100 aircraft by 2015. CALC's fleet has mainly been built through sale/leaseback agreements of new aircraft, as well as operating lease agreements of both new and used aircraft.