China carrier in $260m engine deal

Zhejiang Loong Airlines inked a deal with CFM International to purchase Leap-1A engines for the airline's nine future A320neo aircraft on Tuesday at the Zhuhai Airshow.

The Chinese domestic carrier becomes the first consumer of CFM's Leap-1A engine in China with the orders valued at $260 million based. The two sides also signed a contract for the maintenance of the company's current 15 CFM56-5B engines.

As a private-owned carrier, Zhejiang Loong Airlines opened its business in Dec 2013. It now operates nine aircraft and flies to 29 domestic destinations.

CFM International is a joint venture between the French Safran Group and the US giant General Electric.