Colorful Guizhou Airlines has signed a 12-year Rate-Per-Flight-Hour Agreement with CFM International for the LEAP-1A engines that will power the airline's future fleet of at least 15 leased Airbus A320neo aircraft. The agreement is valued at approximately $500 million U.S. at list price.
RPFH agreements are part of CFM's portfolio of flexible aftermarket support offerings. Under the terms of the agreement, CFM Services guarantees maintenance costs for the airlines LEAP-1A engines on a dollar per engine flight hour basis.
Based in Guiyang, capital of Guizhou Province, Colorful Guizhou Airlines operates a fleet of regional aircraft trunk and regional routes for passenger service.
"Colorful Guizhou began working with CFM very early on. Expanding our operations into the narrow-body segment with CFM engines is critical to helping us achieve our goal of increasing our fleet to 25 aircraft by 2025." said Shijiong Li, chairman of Colorful Guizhou
"We are pleased that Colorful Guizhou Airlines has chosen to work with CFM Services for its aftermarket support," said Gaël Méheust, president and CEO of CFM International. "Our long-term support strategy will help this airline get the most value from this very important asset over the long term."