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Southwest Extends MCPHSM Contract With $1.2 Billion Agreement

June 14, 2001

EVENDALE, OHIO - Southwest Airlines has signed a five-year, $1.2 billion extension to its Maintenance Cost Per Hour (MCPHSM) contract with GE Engine Services (GEES).Under the agreement, GEES will install advanced technology core upgrade kits the airline has purchased from CFM International* for 300 CFM56-3 engines. GEES will continue to maintain this fleet through July 2012. The upgrade, which includes advanced three dimensional high pressure compressor aerodynamics (3-D aero) and new high pressure turbine hardware, will be certified in early 2002 and begin delivery later that year."We rely heavily on our CFM56-3 fleet," said Jim Sokol, vice president of Maintenance and Engineering for Southwest Airlines. "This contract with GE Engines Services helps assure us that we're going to maximize our investment in this upgrade program and that we can continue to rely on this fleet for many years to come.""We're really looking forward to furthering our relationship with Southwest Airlines," said George Oliver, vice president and general manager of GE Engine Services. "It is highly gratifying to have an airline of this stature express continued confidence in our ability to provide consistent, high-quality, cost-effective maintenance."GEES offers MCPH service contracts at a flat-rate cost per flying-hour to help airlines forecast expenses, manage costs, and plan for technical improvements in its maintenance budget. The new CFM56-3 core technology reduces maintenance costs through longer time on wing and extended component life, allowing GEES to pass through cost savings to Southwest."The investment CFM made in this new technology makes a great product even better and will provide Southwest with substantial benefits," said Rex Williams, general manager of Fleet Management Operations for GE Engine Services. "As their service provider, it gives GEES the opportunity to provide better products and services." SMMCPH, Maintenance Cost Per Hour and On Wing Support are service marks of General Electric Company.
* CFM International is a 50/50 joint company between Snecma Moteurs (France) and General Electric (U.S.)