BOC Aviation Orders LEAP-1B And CFM56-7B Engines

$2B in orders will power Boeing 737 MAX 8s, Next-Generation 737s.

BOC Aviation has placed an order for 100 LEAP-1B engines to power 50 new Boeing 737 MAX 8 aircraft, as well as 60 CFM56-7BE engines to power 30 additional Boeing Next-Generation 737s. CFM values the total engine order at $2B U.S. at list price.

In addition to today's LEAP-1B engine order, BOC Aviation has also placed orders for the LEAP-1A to power Airbus A320neo aircraft and the LEAP-1C engine to power the COMAC C919.

Robert Martin, managing director and chief executive officer of BOC Aviation, said, "We think that the LEAP-1B-powered 737 MAX is a great combination that will bring impressive operating economics to our customers. We know from experience that CFM builds high quality, very reliable engines. This new order reinforces our customers' satisfaction in what CFM has delivered with the CFM56 product line and our confidence in the new LEAP engine."

"We are pleased BOC Aviation has chosen to make the LEAP-1B-powered 737 MAX a big part of its portfolio and to further expand its fleet of CFM56 engines," said Jean-Paul Ebanga, president and CEO of CFM. "We certainly appreciate its continued confidence in our products."

"We have a great, long-standing relationship with the BOC Aviation team," said Chaker Chahrour, vice president of Global Sales & Marketing for CFM parent company GE Aviation. "We are honored to have been a part of their success in the past and look forward to strengthening that relationship even further as they introduce LEAP-powered aircraft into their portfolio."

The foundation of the LEAP engine is heavily rooted in advanced aerodynamics and materials technology development programs. The engine is designed to provide 15% better fuel consumption and an equivalent reduction in CO2 emissions compared to today's best CFM engine, along with a 50% reduction in oxides of nitrogen emissions, and up to a 75% reduction in the engines' noise footprint.

All of BOC Aviation's new Next-Generation 737s will be powered by the CFM56-7BE engine, the production configuration introduced in mid-2011. CFM used advanced computer codes and three-dimensional design techniques to improve airfoils in the high- and low-pressure turbines for better engine performance. In addition, the company improved engine durability and reduced parts count to achieve lower maintenance costs. When combined with airplane improvements, the engine provides 2% better fuel efficiency and up to 4% lower maintenance costs.

BOC Aviation is an Asia-based aircraft leasing company with a portfolio of 251 owned and managed aircraft, operated by 56 airlines in 30 countries worldwide as of June 30, 2014. The Company, owned by Bank of China, has one of the youngest fleets in the industry with aircraft averaging less than four years of age. It is based in Singapore, with offices in Dublin, London and Seattle.

LEAP engines are a product of CFM International, a 50/50 joint company between Snecma (Safran) and GE. CFM has delivered more than 26,500 CFM56 engines to date.