Malaysia's AirAsia yesterday signed a RM4 billion (US$1.1 billion), 20-year maintenance deal with General Electric Co. as well as a RM1.8 billion (US$500 million) contract to buy engines from CFM International.

The budget carrier said the deal with GE is for maintenance, overhaul and repair of 86 engines, including six spares.

AirAsia's chief executive officer Tony Fernandes said the CFM56-5B engines would power the 40 Airbus A320s it has on order.

Synergistic relationship

"We have a synergistic relationship with our partners, GE Aviation and CFM International, and this signing marks the extension of the relationship," he said.

"Having entered into our 5th year of operations, our order of 100 Airbus A320 will make AirAsia the youngest and most modern fleet in the region," he added.

The official Bernama news agency quoted Fernandes as saying that the purchase will be funded by internally-generated cash as well as borrowings.