December 22, 2004 -Reuters
Germany's Air Berlin has selected engines worth USD$1.5 billion from CFM International to power its 110 new Airbus A320 aircraft, the low-cost airline said on Wednesday.
Last month Air Berlin ordered 70 Airbus A320 aircraft, worth as much as USD$4.5 billion, with Austrian partner airline Niki. The firm also has an option for an additional 40 aircraft.
The order will more than double its fleet of 42 planes, almost entirely made up of Boeing 737s. The new planes will be delivered from 2006 until 2011.
Air Berlin said in a statement CFM, jointly owned by General Electric and France's Snecma, got the order because its engines were similar to engines at its existing Boeing fleet and use 4 percent less fuel.
In addition, the airline said spare parts could be used for both aircraft types and its technicians need not be retrained.
Privately-owned Air Berlin has expanded rapidly over the last few years to become Germany's second largest airline and Spain's largest foreign-owned domestic carrier.
Air Berlin's largest hub is on the island of Majorca, but it also serves the Canary Islands, mainland Spain, leisure destinations in Greece and Turkey and most European capitals.
Competition in the cut-throat budget airline sector is intense. Rival Ryanair has warned of a "bloodbath" this winter as it drives down fares.
Air Berlin served 38.5 percent more passengers in the first nine months of 2004 than in the previous year.
(Reuters)
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