Virgin Blue Signs OnPoint Solution Agreement for CFM56 Engines

Released on Wednesday, August 27, 2008

August 27, 2008 -- EVENDALE, OHIO -- Virgin Blue has entered a six-year OnPointSM solution agreement that covers the maintenance and overhaul of all CFM56-7B* engines operated by Virgin Blue and its international carrier Pacific Blue. The agreement is valued at up to $300 million (USD).

"After lengthy negotiations, it was clear that GE offered the best solution for Virgin Blue Airlines," said Brian Sharp, general manager, Engineering Operations for Virgin Blue. "GE's OnPoint solution provides for lower cost of ownership over the life of this contract and ensures excellent performance for our fleet."

"We are very pleased Virgin Blue selected GE as its MRO provider for its CFM56-7B engine fleet," said Tom Gentile, vice president and general manager of GE Aviation's Services organization. "With this OnPoint solution agreement, Virgin Blue's CFM56 engines will receive the high quality CFM material and service offerings to keep its fleet operating at optimal performance."

With more than 31 percent of the Australian domestic market and a modern fleet of 68 Next Generation Boeing 737-700 and -800 aircraft and Embraer E-190 and E-170 aircraft, Virgin Blue Airlines currently operates more than 2,100 flights a week to 24 Australian cities and centres and eight international destinations incorporating ports in New Zealand, Fiji, Vanuatu, Tonga, Samoa and the Cook Islands.� Virgin Blue's total annual passenger numbers exceeds 15 million travelers.

OnPoint solutions are flexible, long-term commitments designed to meet customers' unique engine services needs. Backed by GE's world-class support, these solutions help lower our customers' cost-of-ownership and maximize the use of their assets. Available OnPoint services include overhaul, on wing support, new and used serviceable parts, component repair, technology upgrades, engine leasing and diagnostics.