GE’s CFM Gets $2.6 Billion American Airlines Engine Order

American Airlines Group Inc. (AAL) will buy $2.6 billion of jet engines from a General Electric Co. (GE) venture that beat out United Technologies Corp.’s Pratt & Whitney for the deal.

The U.S. airline, the world’s largest carrier, will purchase 200 Leap-1A engines from CFM International Inc. to power 100 Airbus Group NV (AIR) A320 jets it will begin receiving in 2017, CFM said today in a release. The Leap-1A engine carries a list price of $13 million.

The deal with American gives CFM, a joint venture of GE and France’s Safran SA (SAF), a boost while dealing a blow to Pratt, which is already fielding questions over its new geared turbofan engine. A GTF engine failed in May during ground trials for the Bombardier Inc. (BBD/B) C Series jet, halting flight tests while the planemaker and Pratt investigate.

“We are pleased with how the engine has performed during testing and we look forward to introducing it into our fleet in 2017,” Robert Isom, chief operating officer of American Airlines, said in the release.

American also has orders for Leap-1B engines to power 100 Boeing 737 MAX aircraft, which are also scheduled to be delivered beginning in 2017, CFM said in the release. American has been a CFM customer since 1996 and the airline’s fleet includes 375 Airbus A320 family and Boeing 737 aircraft powered by CFM56 engines, according to the engine manufacturer.

To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editors responsible for this story: Stanley James at sjames8@bloomberg.net Jim McDonald

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