VivaAerobus Signs $37 Million OnPoint^SM Services Agreement with GE

January 8, 2007 -- EVENDALE, Ohio -- VivaAerobus, a newly launched low-cost carrier in Mexico, has signed a six-year, $37 million OnPoint^SM Solution service agreement for its CFM56-3B fleet. Under the agreement, GE will install the CFM56*-3 Advanced Upgrade package in the airline's 10 engines as well as handle overhaul and maintenance needs.

The CFM56-3 Advanced Upgrade features advanced three-dimensional aerodynamics (3-D aero) in the high-pressure compressor and new high-pressure turbine hardware, which was developed for the CFM56-5B and CFM56-7B engines on the Airbus A320 and Boeing Next-Generation 737 aircraft respectively.

"After evaluating the alternatives, the GE OnPoint^SM Solution provided the lowest cost of ownership for our fleet and supported our entry into the market as a new low-cost carrier in Mexico," said Mike Szucs, CEO of VivaAerobus.

The upgrade provides significant benefits, including: up to a 1.6 percent improvement in specific fuel consumption (which directly impacts fuel burn), as well as up to 22 degrees additional exhaust gas temperature (EGT) margin, which reduces maintenance costs through longer on-wing life.

Turbine improvements include new nozzle and shroud materials, a new blade coating, and improved cooling. These changes will extend component life and lower scrap rates and repair costs by as much as 50 percent.

VivaAerobus is a low fares airline in Mexico and began flights in December 2006. Based in Monterrey, Mexico, the airline was formed as a strategic alliance between the Mexican bus group, IAMSA (Inversionistas en Autotransportes Mexicanos SA de CV), and the Irish-backed RyanMex, the investment company of Dr. Tony Ryan, his family and other low-cost aviation specialists.

OnPoint Solutions are flexible, long-term commitments designed to meet customers' unique engine services needs. Backed by GE's world-class support, these solutions help lower our customers' cost-of-ownership and maximize the use of their assets. Available OnPoint services include overhaul, on wing support, new and used parts, component repair, technology upgrades, engine leasing and diagnostics.

GE - Aviation, an operating unit of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft. GE also is a world-leading provider of maintenance and support services for jet engines.

^SMOnPoint is a service mark of General Electric Company.

*CFM56 engines are produced by CFM international, a 50/50 joint company between GE and Snecma.