Malaysia Airlines Finalizes New Engines Deal

23rd Sep 2016

Malaysia Airlines Bhd (MAB) and CFM International finalized an agreement on Thursday for the order of several new Leap-1B engines that will be used to power 25 Boeing 737 MAX aircraft the carrier has also purchased as part of the deal with CFM International.

The two sides made an agreement and signed the deal in the presence of Malaysian Prime Minister Najib Tun Razak. The signing was also witnessed by the chairman of Malaysia Airlines Md Nor Yusof and the chairman and chief executive officer of General Electric (GE) Mr. Jeff Immelt.

In a statement, the Malaysian flag carrier said the order is scheduled for delivery at the start of 2020. The entire deal is worth RM2.59 billion or US$630 million.

Peter Bellew, Malaysia Airlines Bhd Chief Executive Officer and Group Managing Director said the following in a statement about the new deal:

We believe the new Leap engine will bring even better operating economics in terms of fuel efficiency with the same reliability we have come to expect from CFM.

New Engines Offer Much Improved Fuel Efficiency and Reduced Carbon Dioxide Emissions

The statement from Malaysia Airlines also said that the higher durability, combined with the lower weight of the Leap-1B engines resulted in a 15 per cent improvement in fuel efficiency, as well as a reduction in carbon dioxide emissions of also 15 per cent. The new Leap-1B engine is dubbed to be the most advanced, reliable and fuel-efficient power source for planes in the Boeing 737 MAX family.

Malaysia Airlines has a fleet of 54 Boeing 737-800 jets, which are powered with 56-7B engines. The Malaysia-based airline is a long-time CFM56 operator.

CFM International is a 50:50-owned joint venture of General Electric (GE) and Safran Aircraft Engines, a multi-national aircraft and rocket engine manufacturer with headquarters in Courcouronnes, France.

MAB and GE Sign Memorandum of Understanding

During the same event, the Mr Bellew also signed a memorandum of understanding (MoU) with the GE ASEAN President and CEO Wouter van Wersch. The memorandum will help MAB and GE to cooperate on leadership development and continuous improvement.

In a statement regarding the MoU signed with the Malaysian airline, General Electric said it will work hand-in-hand with MAB in supporting the need for leadership development across the Malaysia Airlines group of companies.