British Midland (BM) has selected the International Aero Engines (IAE) V2500-A5 to power the 20 Airbus A320/A321s it is ordering, thus rejecting the rival CFM International (CFMI) CFM56, which powers the UK carrier's fleet of Boeing 737s. The engine selection, which has a book value of nearly $400 million, will be announced at the Paris air show.

The engine order is the second for Airbus single-aisle aircraft which CFMI has lost to IAE in recent weeks, with Singapore's SilkAir selecting the V2500 for eight A319/A320s.

Derby, UK-based British Midland has a memorandum of understanding with Airbus for eight aircraft, which is expected to be firmed up soon. The carrier will take a further 12 on seven-year operating leases (with extension options) from International Lease Finance. The first three of 12 A321s will be delivered in March, April and June 1998, while the first of eight A320s will be delivered in November 1998.

As deliveries of the Airbuses progress, the airline will return all of its Boeing 737-400s to lessors, but plans to retain up to 15 737-500s and around seven -300s.

Source: Flight International