Signs 10-year OnPoint Solution agreement with GE Aviation valued at over US$100 million

Bahrain; April 30, 2009: Gulf Air has placed a US$270 million order for CFM56-5B engines to power 15 new Airbus A320 family aircraft scheduled for delivery between late 2009 and 2013, and signed a 10-year OnPoint Solution agreement with GE Aviation for the maintenance, repair and overhaul of the engines. The agreement with GE Aviation is valued at over US$100 million over the life of the agreement.

Gulf Air, the flag carrier of the Kingdom of Bahrain, is a long-time CFM customer and operates CFM56-5A and -5B powered single-aisle Airbus A320 and long-range, four-engined CFM56-5C powered A340-300 aircraft. The airline operates scheduled services to over 40 destinations in Africa, Asia, Europe, Middle East and Far East from its base at Bahrain International Airport.

Talal Al-Zain, Chairman of Gulf Air, said: "Selecting the CFM56-5B engine demonstrates our continued trust and confidence in this product's excellent technical capability. It also demonstrates our long-standing relationship with CFM who has powered our existing A320 and A340 fleet with superior reliability."

"We are extremely honored to continue our long relationship with this great customer," said Muhammad Al-Lamadani, CFM's Senior Executive Sales for Middle East, Eastern Europe, and Commonwealth of Independent States (former Soviet Union). "The high reliability and low operating costs of the CFM56-5B-powered A320s will help support Gulf Air's long-term profitability and the fleet will also benefit from our world-class customer and product support organization."

GE Aviation's OnPoint solutions are customized service agreements tailored to the operational and financial needs of each customer for any size fleet. The agreement is designed to help lower the customers' cost of ownership and maximize the use of their assets.

All of Gulf Air's CFM56-5B engines are the Tech Insertion configuration. This configuration was introduced in September 2007 and, to date, the fleet of approximately 800 engines in service worldwide has logged nearly 2 million flight hours and more than 1 million flight cycles without a single engine-related event. 

CFM56 Tech Insertion provides operators with a 1 percent improvement in fuel consumption over the life of the product, compared to the base CFM56-5B engine. This lower fuel consumption also lowers CO2, reducing these emissions by 200 tons per aircraft per year. Improved analytic design tools have also enabled CFM to further optimize the Tech Insertion combustor such that it emits 25 percent lower NOx emissions. As a result, the engine meets the new International Civil Aviation Organization (ICAO) Committee of Aviation Environmental Protection standards (CAEP /6) that took effect in early 2008.

Over the engine's life cycle, Tech Insertion will also provide operators with longer time on wing and will lower maintenance costs between five and 12 percent, depending on the thrust rating. These benefits are achieved through improvements to the high-pressure compressor and the high- and low-pressure turbines.

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About GE:
GE (NYSE:GE) is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. GE is Imagination at Work. For more information, visit the company's Web site at http://www.ge.com. 

For further information, please contact: 
Kelly Home/ Roisin Lillis
ASDA'A Burson-Marsteller
Tel: (+971 4) 3344 550
Email: r.lillis@asdaa.com /a.razzak@asdaa.com

© Press Release 2009