AIRSHOW-Aircraft engine makers land deals worth $24 billion

Reuters

Jet engine makers booked $24 billion in orders for power plants and service contracts at the Paris Airshow on Wednesday, reflecting airlines' voracious appetite for fuel-saving jets.

CFM International, a joint venture of General Electric and Safran, added $13.06 billion in orders, bringing its total for the show so far to $15 billion.

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The company's big deal of the day came from low-cost carrier AirAsia, which bought 128 LEAP-1A engines and 72 CFM56-5B with service contracts in a package valued at $8.6 billion.

CFM orders also included 350 CFM56-7B engines for Irish low-cost airline Ryanair valued at $3.7 billion. Ryanair made a commitment on the purchase in March and signed a firm deal on Wednesday.

Leasing company CIT ordered 60 LEAP-1B engines worth $760 million at list prices.

GE Aviation said it booked $11 billion orders for engines and services on Wednesday, bringing its total over the first three days of the show to $11.5 billion.

GE has been picked to power 20 787-10s being purchased by United Airlines and 10 ordered by GE Capital Aviation Services. It also got $800 million in orders for 747-8 and 777-300ERs from Korean Air.

Air Lease Corp, which ordered 33 787s on Tuesday, including 30 787-10s, is powering them with Rolls-Royce engines. GE is sole supplier for the Boeing 747-8 and 777 planes, and competes with Rolls-Royce on the 787.

Pratt & Whitney logged orders with major lease companies on Wednesday. It received a memorandum of understanding with Air Lease Corp for PW1100G-JM engines on 30 firm A320/A321neo orders.

In addition, International Lease Finance Corp said on Wednesday it will use PW1100G-JM engines on 30 more A320neo aircraft, lifting ILFC's total purchases to 180.

Pratt & Whitney did not provide values for either agreement. Chief Executive David Hess said he expected Pratt to land more than 1,000 engine orders during the Paris show.

On Tuesday, the company said it signed a $1.4 billion deal with LATAM Airlines for 84 engines for A320neo planes and an order with Spirit Airlines for 90 engines powering A320neos worth about $1.5 billion at list prices.

On Monday it won 730 orders to power launch customers for Embraer's second-generation E-Jet regional planes. The orders were worth an estimated $14.5 billion at list prices.

(Editing by James Regan)