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--LE BOURGET -- Virgin America has expanded its existing 12-year OnPointSM solution agreement to include its newly ordered 60 CFM56-5B engines that will power its A320 aircraft. The expanded service agreement is valued at more than $320 million (USD) dollars over the life of the contract.
"The expanded agreement will allow GE Aviation to provide the maintenance, repair and overhaul of more than 160 CFM56-5B engines for Virgin America," said Paul McElhinney, president and chief executive officer GE Aviation's Services operation. "The OnPoint solution agreement will ensure Virgin America's engines receive the highest quality material and service workscope that only an OEM can provide."
"Virgin America and GE Aviation have quickly developed a strong working relationship, and with this expanded OnPoint solution agreement, we will continue to grow our relationship well into the future," said Kevin McAllister, vice president and general manager of Global Sales for GE Aviation.
Since its launch in August 2007, Virgin America has created 2000 new jobs and grown to serve multiple destinations across North America. As one of the few growing U.S. airlines, Virgin America continues to expand its fleet, growing from its current 39 aircraft to a projected fleet of 52 aircraft by mid-2012. The low-fare airline has expanded service to Orlando, Dallas-Fort Worth, Los Cabos, Cancun and Chicago in the past six months alone. Known for friendly service, beautifully designed cabins and inventive amenities, like touch-screen entertainment at every seat, Virgin America has swept the major reader-based travel awards since its launch, including "Best Domestic Airline" in Conde Nast Traveler's Readers' Choice Awards and Travel + Leisure's World's Best Awards. The airline's current base of operations is San Francisco International Airport's newly opened Terminal Two. Virgin America flies to San Francisco, Los Angeles, New York, Washington D.C., Seattle, Las Vegas, San Diego, Boston, Fort Lauderdale, Orlando, Dallas-Fort Worth,Chicago as well as Los Cabos and Cancun, Mexico.
"As a young airline with a growing fleet, having the right aircraft and maintenance program is critical. We're pleased to renew our relationship with GE Aviation, as we expand our Airbus A320 Family fleet and bring our award-winning service to more new markets in the years ahead," said Virgin America Senior Vice President of Technical Operations Mark Bianchi.
OnPoint solutions are customized service agreements tailored to the operational and financial needs of each customer for any size fleet. These agreements are designed to help lower the customers' cost of ownership and maximize the use of their assets. Backed by GE's global support network, OnPoint services may include overhaul, on wing support, new and used-serviceable parts, component repair, technology upgrades, engine leasing, integrated systems support and diagnostics and integrated systems.
GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.
Source: Virgin America Expanded Its OnPoint Solution Agreement to New CFM56-5B Engine Order
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