SPICEJET SEALS $12.5 BN ENGINE CONTRACT
SpiceJet has finalised $12.5 billion contract for LEAP-1B engines to power it’s fleet of 155 Boeing 737 Max planes.
The agreement, which covers 10-year rate perflight hour agreement and spare engines, was signed on Saturday on the sidelines of French President Emmanuel Macron’s visit to India. LEAP-1B engines are manufactured by CFM International, a part of Safran group of France, and is the sole engine variant for the 737 Max planes.
Last January, the airline ordered Boeing 737 Max planes in the $ 22-billion deal. SpiceJet expects to receive the first aircraft from the order in August this year and 14 others by April next year.
Under the terms of the agreement signed on Saturday, CFM guarantees maintenance costs for all of SpiceJet’s LEAP-1B engines on a pay-by-hour basis.
“We are looking forward to introducing the new LEAP-1B into our fleet,” said Ajay Singh, Chairman and Managing Director, SpiceJet.
“The CFM56 engines, we currently operate, have been a highly valued asset for us over the years. From what we have seen so far, the LEAP-1B is living up to its promises for efficiency and reliability. We hope they provide us unmatched service reliability while keeping our costs in check, to ensure profitable operations.” Philippe Petitcolin, CEO of CFM parent company Safran Group said, “It has been exciting to watch this airline grow over the years and we believe it has a very bright future.”