SpiceJet enters whopping Rs. 81,000cr-deal with France's Safran for aircraft-engines
What's the story
No-frills India airline SpiceJet has inked a $12.5bn (Rs. 81,000 crore) deal with French major Safran Group for CFM aircraft engines; it's one of the biggest-ever aviation sector deals. SpiceJet and Safran Group have finalized the purchase of LEAP-1B engines to power a total of 155 Boeing 737 MAX planes, along with spare engines to support the fleet, a release said. Here's more.
Information
Deal signed at Indo-French Economic Partnership ceremony
The SpiceJet-Safran deal for CFM engines was inked at the Indo-French Economic Partnership signing ceremony here on the occasion of French President Emmanuel Macron's visit to India. CFM engines are manufactured by CFM International, a joint venture between Safran and General Electric.
Details
SpiceJet, CFM Services sign 10-year RPFH agreement
SpiceJet has also signed a ten-year Rate per Flight Hour (RPFH) agreement with CFM Services that covers all LEAP-1B engines powering the airline's 737 MAX planes. RPFH agreements are part of CFM's portfolio of flexible aftermarket support offerings. Under the agreement terms, CFM guarantees maintenance costs for all SpiceJet's LEAP-1B engines on pay by hour basis, the release issued by the airline said.
LEAP-1B engines
What did SpiceJet CMD say on introducing LEAP-1B?
Ajay Singh, Chairman and Managing Director of SpiceJet said: "We are looking forward to introducing the new LEAP-1B into our fleet. From what we have seen so far, the LEAP-1B is living up to its promises for efficiency and reliability. He added, "We hope they provide us unmatched service reliability while keeping our costs in check to ensure profitable operations."
Safran Group
Proud to be big part of SpiceJet team: Safran CEO
Safran Group CEO Philippe Petitcolin said it has been exciting to watch the SpiceJet airline grow over the years, adding he 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. Currently, SpiceJet operates a fleet of more than 38 CFM 56-7B-powered Boeing 737 NG family aircraft.