GEAE awarded $1.5 billion

this week signed an OnPoint Solution engine service agreement with

for the maintenance, overhaul and repair of 120 CFM56-5B6 engines that will power the airline's new fleet of Airbus A320-200 aircraft. The 20-year agreement is worth approximately $1.5 billion.

In 2002, AirAsia signed a five-year material agreement with GE to support the airline's CFM56-3 engines powering its fleet of Boeing 737-300 aircraft.

The CFM56-5B engines, which will enter the airline's fleet between 2006 and 2010, will be maintained and overhauled at GE Malaysia’s overhaul facility at SAAS Airport, Subang, Malaysia.

GE Malaysia is a joint venture with Malaysia Airlines (MAS) and is Asia's largest CFM56 engine overhaul service provider. The facility specialises in the overhaul and repair of CFM56, and PW4000 engines for MAS and other Asia-Pacific airlines.

GE said in a statement that OnPoint services include overhaul, on-wing support, new and used parts, component repair, technology upgrades, engine leasing and diagnostics.