BOGOTA, Colombia -- Avianca today announced that it has signed a 15-year OnPointSM solution agreement with GE Aviation's Services business for the maintenance and overhaul of the CFM56-5B* engines that power the airline's fleet of 50 Airbus A319 and A320 aircraft. The agreement is valued at more than $750 million.
The maintenance and overhaul work will be performed at the GE's Celma facility at Petropolis, Brazil.
Avianca has taken delivery of its first A320 aircraft. In 2007, the airline signed agreements to purchase 47 A319/A320 aircraft and has leased three additional airplanes from CIT Aerospace.
"We are pleased to sign this agreement with GE," said Fabio Villegas, CEO of Avianca. "It is a company that has shown a deep commitment to delivering high-quality service with outstanding repair capabilities, on time and at a price which will help us meet our business needs."
Synergy Group, the parent company of Avianca, also owns Brazil-based OceanAir. The majority of the new aircraft will be operated on Avianca's domestic and international routes throughout the Americas, while the balance of the aircraft will be flown by OceanAir within Brazil.
"We're excited to enter this new relationship with Avianca and to have the opportunity to bring all of the benefits of OnPoint Solutions to Avianca," said Tom Gentile, vice president of GE Aviation Services. "OnPoint will help this airline maintain a technically superior fleet while keeping its costs predictable, thus improving asset value and utilization and increasing its operating efficiency."
OnPoint solutions are flexible, long-term commitments designed to meet customers' unique engine services needs. Backed by GE's world-class support, these solutions help lower our customers' cost-of-ownership and maximize the use of their assets. Available OnPoint services include overhaul, on wing support, new and used serviceable parts, component repair, technology upgrades, engine leasing and diagnostics.
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.
SMOnPoint is a service mark of General Electric Company.
*CFM56-5 engines are produced by CFM International, a 50/50 joint company between GE and Snecma (SAFRAN Group).