Monday, March 12, 2018

SpiceJet, CFM Sign $12.5 Billion Engine, Service Deal

One of India’s fastest-growing airlines has signed a $12.5 billion deal with CFM International Inc. for engines and a 10-year services contract for an incoming fleet of more than 150 Boeing Co. 737 MAX aircraft.

SpiceJet Ltd. has agreed to buy the LEAP-1B engines and spare engines from CFM, which is a joint venture between France’s Safran Aircraft Engines SAS and General Electric Co.’s GE Aviation, the two companies said in a statement on March 10. The deal also includes a 10-year services contract for maintenance of the CFM engines, which will be billed on an hourly basis, the statement said.

The deal provides engines and maintenance that will underpin SpiceJet’s existing $22 billion order for 155 Boeing aircraft, marking the Indian budget carrier’s biggest expansion plan yet. SpiceJet has been trying to claw back market share from the country’s leading discount airline IndiGo, which is operated by InterGlobe Aviation Ltd.

SpiceJet already deploys CFM engines in its current fleet.
“From what we have seen so far, the LEAP-1B is living up to its promises for efficiency and reliability,” Ajay Singh, SpiceJet’s chairman and managing director, said in a statement.
11/03/18 Anurag Kotoky/Bloomberg