SpiceJet inks $12.5 billion deal with Safran for aircraft engines

SpiceJet has finalised $ 12.5 billion contract for LEAP-1B engines to power its fleet of 155 Boeing 737 Max planes.

The agreement which covers ten-year rate per flight hour agreement and spare engines was signed on Saturday on the sidelines of French president Emmanuel Macron's India visit. LEAP-1B engines are manufactured by CFM International, a part of Safran group of France and are the sole engine variant for the 737 Max planes.

Last January, the airline ordered Boeing 737 Max planes in $ 22 billion deal. SpiceJet expects to receive the first aircraft from the order in August and another 14 by next April.

Under the terms of the agreement, CFM guarantees maintenance costs for all 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 Mr 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. “It has been exciting to watch this airline grow over the years and we believe it has a very bright future."