AirAsia X and GE Sign MOU for CF6 Engines for Its Airbus A330 Fleet

KUALA LUMPUR – April 28, 2014 – AirAsia X, the long haul, low fare airline affiliate of the AirAsia Group and GE Aviation have signed a Memorandum of Understanding for the selection of CF6-80E1 engines to power AirAsia X’s 25 new firm Airbus A330-300 aircraft, with options for an additional three A330 aircraft. These engines will be covered by a multi-year OnPointSM solution service agreement for engine maintenance, repair and overhaul. The list price for the engines and the service agreement is valued at more than $1.5 billion (USD) over the life of the agreement.

At the signing ceremony witnessed by U.S. President Barack Obama, Tan Sri Tony Fernandes, AirAsia Group CEO said, “To power our new order of 25 additional Airbus A330-300 aircraft, we are pleased to select GE CF6-80E1 engines. GE was selected based on technical reliability and fuel efficiency performance with combined competitive pricing that will ensure AirAsia X maintains our competitive advantage as the world’s lowest unit cost airline operator, with industry-leading reliability performance. We firmly intend to be the undisputed global market leader in the long-haul low-cost carrier space.

Tan Sri’ Tony Fernandes adds, “With this order, GE will become AirAsia X’s second core engine supplier. Our fleet size has reached sufficient scale to support two engine types, with sufficient spare engine coverage, specialist engineers and technicians, and strong on-site service commitment from both engine providers. GE’s long -standing relationship and track record with the AirAsia Group, gave us confidence to make this selection.”

“GE is proud of its long association with AirAsia Group and are honored to be selected to power AirAsia X’s A330 fleet for this large and important order,” said Kevin McAllister, Vice President and General Manager of Global Sales & Marketing for GE Aviation. “AirAsia Group is a leading low-cost carrier with domestic, regional and international operations, and CF6 engines will support its competitive international cost position.”

GE's CF6 engines have been among the most utilized and reliable in the industry. Powering more than 10 models of wide-body aircraft, the engine family has established an unparalleled record of reliability for more than 40 years with more than 395 million flight-hours in service with more than 200 operators worldwide.

GE Aviation has continuously reinvested in the CF6 platform and is refining component efficiencies across the CF6-80E1 engine to provide improvements in fuel efficiency for Airbus's enhanced A330 aircraft. More than 560 CF6-80E1 engines have been delivered for the Airbus A330 aircraft.

OnPoint solutions are customized service agreements tailored to the operational and financial needs of each customer for any size fleet. These agreements are designed to help lower the customers' cost of ownership and maximize the use of their assets. Backed by GE's global support network, OnPoint services may include overhaul, on wing support, new and used-serviceable parts, component repair, technology upgrades, engine leasing, integrated systems support and diagnostics and integrated systems.

GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.

AirAsia X is the low-cost, long-haul affiliate carrier of the AirAsia Group that currently flies to destinations in China, Australia, Taiwan, Korea, Japan, Sri Lanka, Nepal and the Middle East. The airline currently serves 19 destinations across Asia (Nagoya, Tokyo, Osaka, Seoul, Busan, Taipei, Beijing, Hangzhou, Chengdu, Shanghai, Xian, Colombo and Kathmandu), Australia (Sydney, Melbourne, Adelaide, Perth and Gold Coast) and the Middle East (Jeddah). AirAsia X currently operates a fleet of 16 Airbus A330-300s, each with a seat configuration of 12 Premium Flatbeds and 365 Economy seats. The airline has carried over 12 million guests since it commenced long-haul in 2007. Our vision is to further solidify our position as the global leader in low-cost, long-haul aviation and create the first global multi-hub low-cost carrier network along with other carriers of the AirAsia Group.

 

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