Skybus Orders $750M in CFM Engines for Its New Planes

Skybus Airlines has chosen an engine produced in the Cincinnati suburb of Evendale to power its fleet of 65 Airbus A319 planes.

The order is valued at more than $750 million, based on the list price for the CFM65-5B engine made by CFM International, a venture between General Electric Co. and French company Snecma, owned by the Safran Group.

Skybus Chief Executive Bill Diffenderffer praised the engine's quality and reliability, adding that he expected the engine's "low cost of ownership" to contribute to Skybus' plans to offer lower airfares than its competitors.

The engine deal follows the purchase in October of 65 Airbus planes. The French aerospace company called that order, valued about $3 billion at list price, one of the largest it had received from a startup U.S. airline.

The A319 typically holds 130 passengers. While Skybus awaits delivery of the order, which will begin in late 2008, it will use leased aircraft.

Skybus spokesman Bob Tennenbaum said yesterday he estimates the airline will begin flying May 1. He emphasized though, that the date is subject to change as the airline awaits the necessary Federal Aviation Administration approvals required to begin operations.

Routes, fares and other details are yet to be announced. The airline received an incentive package from state and local development officials valued at $57 million.

Skybus investors include Battelle Services Co. Inc., Huntington Capital Investment Co., Nationwide Mutual Capital and The Dispatch Printing Company, publisher of The Dispatch.

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