SPICE­JET’S $12.5 BIL­LION DEAL WITH SAFRAN FOR AIR­CRAFT EN­GINES

SP's Airbuz - - Newescebnt -

On March 10 this year, no-frills air­line Spice­Jet inked a $12.5 bil­lion (`81,000 crore) deal with the Safran Group of France for CFM air­craft en­gines. CFM en­gines are man­u­fac­tured by CFM In­ter­na­tional, a joint ven­ture be­tween Safran and Gen­eral Elec­tric. The deal that is one of the big­gest in the avi­a­tion sec­tor, was inked at the Indo-French Eco­nomic Part­ner­ship sign­ing cer­e­mony in Delhi on the oc­ca­sion of the visit to In­dia by Em­manuel Macron, the Pres­i­dent of France. Spice­Jet and Safran Group have now fi­nalised the pur­chase of LEAP-1B en­gines to power a to­tal of 155 Boe­ing 737 MAX planes, along with spare en­gines to sup­port the fleet. The air­line has also signed a ten-year Rate per Flight Hour (RPFH) agree­ment with CFM Ser­vices that cov­ers all LEAP-1B en­gines pow­er­ing Spice­Jet’s 737 MAX planes. Cur­rently, Spice­Jet op­er­ates a fleet of more than 38 CFM 56-7B-pow­ered Boe­ing 737 NG fam­ily of air­craft. Un­der the terms of the agree­ment, CFM guar­an­tees main­te­nance costs for all Spice­Jet’s LEAP-1B en­gines on a pay-by-hour ba­sis, the re­lease is­sued by the air­line said. “We hope they pro­vide us un­matched ser­vice re­li­a­bil­ity while keep­ing our costs in check to en­sure prof­itable op­er­a­tions,” Spice­Jet CMD Ajay Singh said. Safran CEO Philippe Petit­colin has said that it has been ex­cit­ing to watch this air­line grow over the years and be­lieves it has a very bright fu­ture.” We are proud to be such a big part of the Spice­Jet team over the long term,” he added.

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