China’s Zhejiang Loong Airlines has signed a long-term Rate per Flight Hour (RPFH) agreement with CFM International to support its fleet of 20 LEAP-1A engines.
Under the terms of the 15-year agreement, which is valued at $333 million U.S., CFM will guarantee maintenance costs on a dollar per engine flight hour basis.
Zhejiang Loong Airlines, based in Hangzhou in Eastern China, began commercial operations in December 2013 with two CFM56-5B-powered Airbus A320 aircraft and has since added eight additional airplanes to its fleet.
“We are very pleased to expand our relationship with CFM,” said Liu Qihong, chairman of Zhejiang Loong Airlines. "We chose the LEAP engine because of its fuel efficiency, which will not only keep our costs in check but also help production the environment with fewer emissions. We look forward to introducing it into our fleet.”
“We are honored to continue our association with Loong Air,” said Jean-Paul Ebanga, president and CEO of CFM International. “We believe that the LEAP engine will prove to be a great asset to their fleet and this agreement will help ensure the long-term value of that asset.”