Sunday, March 18, 2018

Fuel efficient CFM engines to help SpiceJet reduce costs, improve margins: Ajay Singh

SpiceJet expects reduction in overall operational costs and improved margins once the fuel-efficient CFM engine-powered Boeing planes are pressed into service, according to the airline's chief Ajay Singh.

The low-cost carrier, which has remained profitable for 12 straight quarters after being on the brink in late 2014, is charting out ambitious expansion plans, including the possibility of long haul low-cost overseas flights.

In one of the biggest transactions in domestic aviation space, SpiceJet has inked a USD 12.5 billion deal with French major Safran Group for CFM aircraft engines.

The deal is for LEAP-1B engines to power a total of 155 Boeing 737 MAX planes, along with spare engines to support the fleet.

Describing it as a "landmark deal" for the airline in terms of purchase of engines and the ten-year maintenance contract, Singh said the engine's fuel burn is around 15 per cent lower, while the contract ensures that there is a one-stop solution.
18/03/18 PTI/Economic Times

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