Virgin Blue has ordered 50 CFM56-7B engines from CFM to power a fleet of 50 new Next-Generation 737 aircraft ordered from Boeing.
The order is part of a contract, which includes the option of a further 25 aircraft and 30 future purchase rights.
The new aircraft will feature engines with CFM56-7BE configuration.
The CFM56-7BE powered 737s will provide 2% savings in fuel consumption, resulting in a 2% reduction in carbon emissions and savings of up to 4% on lower maintenance costs.
A CFM56-7BE engine enhancement programme was launched in April 2010 and its introduction is designed to coincide with Boeing Next-Generation 737 airframe improvements.
Virgin Blue is expecting to receive the first of its 737s in mid-2011.