If Lion Air group takes delivery of all of the CFM Leap engines it has ordered, it will become the largest Leap customer based on orders for 924 of the engines valued at $13.4 billion at list prices.
Transportation Partners, Lion Air’s leasing arm, recently finalized orders for 380 Leap-1A engines for its Airbus A320neo/A321neos, concluding a deal originally announced in February 2016. At the same time, it extended a 25-year Material Service Agreement for CFM56-7B, -5B and Leap-1B engines to also include the Leap-1As. That original service agreement was signed in 2014.
The second Lion Air Group order comprises 544 Leap-1B engines that will power Boeing 737 Max 8, 9 and 10 aircraft, 10 of which already are in service.
In addition to producing the Leap engines, CFM has been helping Batam Aero Technic, the Lion Air MRO in Batam, Indonesia, set up its own engine maintenance facility and test cell since 2016. That includes input on facility design and construction.
That engine facility should start operating in 2022, according to Lion Air. The airline is only completing line maintenance for engines now, but once the facility is approved and it receives FAA maintenance approval, it will start maintaining and overhauling CFM56 and Leap powerplants.
However, until then, CFM is performing the maintenance.
Batam Aero Technic opened its first facilities in 2013 and now occupies two hangars that hold 12 narrowbody or four widebody aircraft simultaneously. In addition to the engine facility it is building, the airline MRO also is in the process of constructing a third hangar, which could open the end of this year.