Aviation Capital Group Selects IAE V2500 Engine for 25 Airbus A320 Family Aircraft

Released on Tuesday, July 15, 2008

Aviation Capital Group (ACG) has selected the V2500 engine from IAE International Aero Engines to power 25 Airbus A320 family aircraft in a deal worth in excess of $400 million. The first IAE-powered aircraft is due to be delivered in 2011.

This order for the V2500 SelectOne build standard is the first ACG has placed directly for the IAE engine. ACG currently owns 49 V2500-powered aircraft.

IAE President & CEO Jon Beatty said: "ACG has a deserved reputation as flexible and responsive to its customers' needs, backed by a significant amount of industry knowledge and experience. It is committed to providing the latest technology to its customers. As SelectOneTM is the most technically advanced engine option for the A320 family, it is a natural expansion of ACG's portfolio."

"ACG's strategy is to acquire the aircraft and engine power-plant combinations that are in high demand by our customers. The SelectOne™ engines have the latest technology offered by IAE for fuel efficiencies and maintenance cost reductions that are so important in times such as those facing the industry today," said R. Stephen Hannahs, Group Managing Director/Chief Executive Officer of ACG. "The SelectOneTM standard has the potential to offer a four per cent fuel burn benefit, which translates into millions of dollars saved over the engine's lifetime."

The 22,000-33,000lb of thrust V2500 is available in seven different thrust settings to power the Airbus A319, A320 and A321 family of aircraft as well as the A319 Corporate Jet. More than 5,000 V2500 engines are in service or on firm order.

The SelectOne™ build standard delivers an additional one percent fuel burn advantage, along with a corresponding reduction in CO2 emissions. It will improve time-on-wing by up to 20 percent, and demonstrate compliance with the most stringent CAEP/6 NOx standards. It is due to enter into service later this year.

Aviation Capital Group is owner/lessor and portfolio manager of a diversified fleet of commercial jet aircraft leased to the world's leading airlines. Its portfolio includes 233 aircraft leased to 97 airlines in 42 countries. ACG's Capital Markets Group also provides asset management and remarketing services to aircraft investors and institutional clients. ACG was founded in 1989 and is a wholly-owned subsidiary of Pacific LifeCorp.