CFM wins 54 percent of new aircraft orders in first half of 2000

CFM56 engines were chosen to power 54 percent of the 507 aircraft ordered in the 100+ passenger market ordered by the end of June. These orders were for 562 engines to power 276 aircraft at a value of about $2. 8 billion dollars.

CFM56 engines are produced by CFM International, a 50/50 joint company between Snecma Moteurs of France and General Electric of the United States.

Gerard Laviec, president and CEO of CFM cited several factors keeping the market strong. First, the world economy remains strong, including an Asian recovery. Airlines have remained profitable and have maintained the balance between orders and deliveries to avoid aircraft over capacity. In addition, growth in revenue passenger miles world-wide exceeds predictions.

"The one unanswered question is the future of fuel prices," said Laviec. The market has seen fluctuations in the past and, so far, airlines have maintained profitability in the current environment. However, the long-term impact of unstable prices is still unclear. Even with that, though, new forecasts predict a very soft landing for the industry and no significant drop in demand until around 2003. "

He forecast that this strong market environment would enable CFM to maintain its current production rate of about 1,000 engines annually for the next three years (2000, 2001, 2002) with minimal impact on its firm backlog of about 3,000 engines.

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