Indian low-cost airline SpiceJet has finalised a $12.5bn deal with CFM International for the purchase of LEAP-1B engines to power its new fleet of 155 Boeing 737 MAX aircraft.
Under the deal, CFM International will also provide spare engines for the fleet.
In addition, SpiceJet has entered a ten-year rate-per-flight-hour (RPFH) agreement with CFM Services to maintain the LEAP-1B engines powering its 737 MAX planes.
As part of the agreement, CFM guarantees maintenance costs for all SpiceJet’s LEAP-1B engines on a pay-by-the-hour basis.
SpiceJet chairman and managing director Ajay Singh said: “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.”
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By GlobalDataThe latest engine deal will support an agreement announced between SpiceJet and Boeing in January last year for up to 205 aircraft.
It includes a firm order for 100 new 737 MAX aircraft, as well as a previous order for 55 MAXs, with a combined list price value of $22bn.
SpiceJet expects to take delivery of first of the 737 MAX from the order in August, and another 14 Max aircraft by March next year, reported livemint.com.
The company currently operates a mixed fleet of 60 aircraft, including 38 Boeing 737 and 22 Bombardier Q 400 jets.
