AirAsia in $8.6bn Engine Deal to Power Airbuses

Fast-growing budget carrier AirAsia said Thursday it had ordered 100 engines worth $8.6 billion from manufacturer CFM International to power Airbus A320 airliners ordered last year.

The deal inked Wednesday in France includes 64 new LEAP-1A engines for fuel-efficient A320neo jets, the Malaysia-based carrier said in a statement.

Asia's largest budget carrier by fleet size said the order also includes a 20-year service agreement.

CFM -- a joint venture between GE Aviation of the United States, and France's Safran -- says the LEAP engines provide up to 15 percent better fuel efficiency.

AirAsia ordered 100 A320s for $9.3 billion in December.

Airbus said at the time that the deal made AirAsia the biggest customer for single-aisle A320 airliners in the world, with a total of 475.

The airline serves about 70 destinations in 20 countries across Asia.