SOURCE: IAE International Aero Engines AG

IAE International Aero Engines AG

September 21, 2011 08:00 ET

China Eastern Selects V2500S for 50 Aircraft

BEIJING--(Marketwire - Sep 21, 2011) - International Aero Engines announced today China Eastern Airlines has selected IAE to provide V2500 engines to power 50 new A320 series aircraft. The deal also includes comprehensive long-term engine aftermarket services.

Deliveries will commence in August 2012 and continue to 2015, and China Eastern will employ the new V2500s to expand the capacity of its fleet.

The deal is valued at over $1.2 billion including the engine and aftermarket business. IAE will deliver engines for 11 A319s (including five high altitude A319s), 19 A320s and 20 A321s.

"China Eastern has expressed its satisfaction with the V2500. It has operated very well since it entered service on the A320 with China Eastern in 2008," said Ian Aitken, president and chief executive officer of International Aero Engines. "China Eastern recognizes the significant fuel burn advantage that the engine provides and the assurance that's provided by the fleet hour agreement support."

China Eastern is one of the leading airlines in China and enjoys a market-leading position for punctuality. It is a long-time IAE customer, dating back to 1997 when it operated MD-90s powered by V2500s.

It is one of the largest airlines in the country by number of aircraft in service, with more than 360 aircraft in service.

IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (LSE: RR), Japanese Aero Engines Corporation and MTU Aero Engines. There are more than 5,500 V2500s in service or on firm order with nearly 200 customers around the world.