Garuda Indonesia has picked the CFM International Leap-1-A for its Airbus A320neo aircraft, and ordered CFM56-5B powerplants for its standard A320s and Rolls-Royce Trent 700 engines for four more Airbus A330s.
The 15 standard A320s, which will be delivered from 2014 and the 10 A320neo that are due to arrive from 2017 are for Garuda's low-cost subsidiary Citilink, which will operate them on domestic and regional routes from its hubs in Indonesia. The Leap-1-A contract is valued at $220 million and the CFM56-5B deal around $270 million, said CFM.
Indonesia's national carrier, which will operate the A330s on its medium-haul routes, has picked the Trent 700s for another six A330s that it has ordered. The value of the contract is $280 million, said Rolls-Royce.
Garuda CEO Emirsyah Satar said that the selection of the Leap-1-A for the A320neo will bring "double-digit enhancements" in fuel burn, noise, and carbon and NOx emissions to the airline's operations. "These are all critical elements to our long-term plans to grow and expand our reach with Citilink," he added.
CFM and Garuda also signed a 15-year Rate Per Flight Hour (RPGH) contract, valued at around $500 million, to support the CFM56-7B engines that power the airline's 63 Boeing 737-800 aircraft.
As part of the contract, Garuda's maintenance arm, GMF AeroAsia, will acquire the capability to overhaul the engine and undertake that job itself as soon as it is able to do so. This would "increase the competency" of Indonesia's aviation industry to support the growth of the country's aviation industry, said CFM president and CEO Jean-Paul Ebanga.