- Air France-KLM (OTC:AFLYY) has established an agreement with CFM International to acquire 200 LEAP-1A engines to power its new fleet of Airbus SE (OTC:EADSY) A320neo and A321neo. Financial terms were not disclosed.
- CFM International is a 50/50 joint venture between GE Aviation, a division of General Electric Co (NYSE:GE), and Safran Aircraft Engines, a division of Safran (OTC:SAFRY).
- Last December, Air France-KLM ordered 100 Airbus A320neo family aircraft - with purchase rights for 60 additional aircraft, to renew the fleets of KLM and Transavia Netherlands and to renew and expand the fleet of Transavia France.
- "Latest generation aircraft like our upcoming A320neo and A321neo enable a 10% unit cost reduction, emit 15% less CO2 and generate 50% less noise, in part thanks to their advanced engines. Through this agreement, Air France-KLM and CFM International are building on their longstanding relationship to make aviation more sustainable," commented Benjamin Smith, CEO of Air France-KLM.
- Price Action: AFLYY shares are trading lower by 4% at $1.20, GE lower by 3.75% at $61.16, and SAFRY lower by 5.73% at $23.60 on the last check Tuesday.
