DAE Capital has selected the IAE International Aero Engines V2500 SelectOne engine to power 20 new Airbus A320s it has on order.
The value of the engines is $340 million at list price and deliveries are scheduled to begin in 2011. The aircraft are part of the 70 that the leasing arm of Dubai Aerospace Enterprise (DAE) placed in July 2008.
"In the current economic environment, our customers demand the lowest cost of ownership. The V2500 offers significant advantages for operators, ensuring its position as one of the most popular engines in service today and making it an important addition to our fleet," says Bob Genise, chief executive of DAE Capital.
John Swanson, IAE regional vice-president global leasing, adds: "DAE Capital is one of the fastest-growing aircraft leasing businesses with an expanding customer base. It is becoming a leading force in this industry with truly global reach. We're delighted to be involved with this exciting venture."
DAE Capital adds that it has not placed the aircraft with any customers, pointing out that the weak demand and soft lease rates mean that it makes more sense to wait until some time next year.
"We have lots of customers in mind, and we will normally place single-aisle aircraft about 12 months before delivery. We are talking to various airlines, but it could be mid-2010 before we commit the aircraft," says Genise.