GE Capital Aviation Services (GECAS) signed an agreement with Virgin America to lease 10 new Airbus A321neo aircraft powered by CFM’s LEAP-1A engines to expand the carrier’s fleet.

“We have been a partner with Virgin America since their founding and we’re thrilled they turned to GECAS to help them expand their fleet with new, more efficient aircraft under lease,” said Norman C.T. Liu, GECAS president and CEO.

The first aircraft is scheduled for delivery in Q1/17 and the remainder will deliver in 2017 and 2018. All 10 aircraft are part of GECAS’ existing orderbook with Airbus.

“As Virgin America continues to grow its network, there’s no question the Airbus A321neo is the right aircraft for us, and we were pleased to work with GECAS to make today possible,” said David Cush, Virgin America president and CEO. “Not only will these aircraft allow us to further reduce our unit costs and improve our revenue position, they demonstrate our continued commitment to reducing carbon emissions and creating an even more sustainable airline.”