Indonesia’s Lion Group and engine maker CFM International have finalized an order for 380 LEAP-1A engines to power the Asian group’s Airbus A320neo and A321neo aircraft.

The final engine order, which is valued at $5.5 billion at list price, was originally announced in February 2016. The final deal was signed in Jakarta March 29 by Transportation Partners, Lion Group’s leasing arm. Lion Group is Indonesia’s largest privately owned airline organization.

In addition to the LEAP-1As, Lion Group has previously ordered 544 LEAP-1B engines to power its Boeing 737 MAX 8, -9, and -10 aircraft, of which 10 are currently in service with Lion Air. With 924 LEAP engines in service or on order with a total list value of $13.4 billion, Lion Group is now the world’s largest LEAP engine customer.

The deal was “part of our journey to strengthen our growth vision,” Lion Air Group president and CEO Edward Sirait said. 

“The new fleet of A320neo and Boeing 737 MAX are critical elements for our long-term growth that will ensure Lion Air Group’s position as the leading airline in the region.”

“Lion Air has already seen the operational benefits of the LEAP-1B engine and understand what a great asset the LEAP-1A will be to its portfolio,” CFM parent company GE Aviation VP-global sales and marketing Chaker Chahrour said.

The agreement includes an extension of a 25-year Material Service Agreement between the two companies for CFM56-7B, CFM56-5B, and LEAP-1B engines originally signed in 2014 and expands its scope to include the LEAP-1A.

CFM will also provide MRO services for Lion Group’s CFM56 and LEAP engines until its own MRO shop, Batam Aero Technic (BAT), is completed. CFM has supported the development of Lion Group’s engine maintenance and test cell facility since 2016, providing project management and advice starting for the design, construction and commissioning of the new facility. 

When operational, BAT will have maintenance and overhaul capability for both CFM56 and LEAP engines.  CFM will provide CFM56 and LEAP engine overhaul training with knowledge transfer that supports the development of local engine MRO specialists.

Alan Dron alandron@adepteditorial.com