Virgin picks GE affiliate for engine order

NEW YORK — Virgin America said Wednesday an affiliate of General Electric Co. will build engines for its latest Airbus aircraft order.

The low-fare carrier based in California said it wants CFM International's high efficiency LEAP engines for 30 of the 60 Airbus A320s that Virgin ordered in late December. It will use CFM56-5B engines for the other 30.

The engines for the 60 planes have a combined list price of $1.4 billion.

CFM is owned by GE, which is based in Fairfield, Conn., and France's Snecma. Its lighter, more aerodynamic LEAP engines are 15 percent more fuel efficient than their peers.

Virgin said they would save the company $48 million in fuel costs per year at current prices. Virgin America paid $83.4 million for fuel in the first three months of 2011, up 53 percent from $54.5 million in the same period a year ago.

The LEAP engines also will reduce carbon dioxide emissions by 15 percent and oxides of nitrogen, another greenhouse gas, by 50 percent, Virgin said.

The new airplanes will begin delivery in 2016.