Saudia Group, CFM sign $8.5bn engines purchase deal

Saudi Arabian Airlines Corporation has signed an agreement to buy CFM International LEAP-1A engines to power its new fleet of 35 Airbus A321neo and 30 A320neo aircraft.

This agreement also includes a rate-per-flight-hour (RPFH) services contract to cover engines from this new order as well as an additional 20 leased A320neo aircraft. This comprehensive agreement is valued at approximately SR 32 billion ($8.5 billion) at list price, reported Saudi Press Agency (SPA).

Based in Jeddah, Saudi Arabian Airlines operates 61 CFM56-5B-powered Airbus A320ceo aircraft, and Saudia Group's low-cost subsidiary, flyadeal, operates 11 CFM56-5B-powered Airbus A320ceo aircraft and 5 A320neo LEAP-1A.

Under the terms of the agreement, CFM will also assist the Saudia Group subsidiary Saudia Aerospace Engineering Industries (SAEI) in developing its own engine overhaul services, including disassembly, inspection, assembly, testing, and qualification/certification for the LEAP-1A engines.

"We have been delighted with the reliability and the best-in-class support provided by CFM over the years," said Ibrahim Al-Omar, Director General of Saudi Arabian Airlines Group.

“We look forward to introducing further LEAP engines into our fleet and we believe that this engine will be a real asset in terms of efficiency and cost-effectiveness.”

"We are honoured by the trust placed by Saudi Arabian Airlines in selecting our products and support capabilities," said Philippe Couteaux, Executive Vice President of Sales and Marketing for CFM International. "CFM is committed to supporting Saudi Arabian Airlines and flyadeal and to add value into their operations.”

CFM International’s advanced LEAP-1A engine continues to set a new industry standard for fuel efficiency and asset utilization, logging more than twelve million engine flight hours in commercial operations.