CFM signed two $1 billion contracts today (Nov. 15) at the Bahrain International Air Show that include services agreements—one with Gulf Air and one with SaudiGulf Airlines.
Gulf Air’s $1 billion contract covers the maintenance of 65 Leap-1A engines, which power the Bahrain carrier’s Airbus A320neos. Gulf Air began operating the A320neo in August, after taking delivery of one of six aircraft it purchased and leasedbacked to SMBC Aviation Capital. The 10-year Rate per Flight Hour maintenance contract means Gulf Air will pay CFM for maintenance on a dollar per flight hour basis.
The airline ordered the Leap-1A in 2017 following its A320neo order in 2016. In addition to the A320neos, Gulf Air operates 16 A320ceos powered by CFM56-5B engines, as well as A330s and Boeing 787s.
The other $1 billion contract CFM signed today was with Al-Qahtani Aviation, the parent company of SaudiGulf Airlines, and involves the purchase of Leap-1A engines to power 10 firm and 10 option A320neos. The value for the firm engine order is about $290 million at list prices.
As part of this contract, CFM will maintain SaudiGulf’s entire fleet of Leap engines under a 12-year Rate per Flight Hour agreement. The maintenance deal includes the Leap-1A engines powering 20 leased A320neos, the first of which will be delivered in 2020. That lease agreement is separate from the $1 billion announcement.
The Saudi carrier currently operates six A320s.