Mumbai: Low-fare carrier SpiceJet Ltd on Saturday said that the airline has signed a $12.5 billion engines and service deal with engine manufacturers CFM International, a GE and Safran Group firm, finalising the purchase of the company’s LEAP-1B engines and long term service agreement for its entire fleet of such engines.

“SpiceJet and CFM International today announced a $12.5 billion agreement that finalises the purchase of LEAP-1B engines to power a total of 155 Boeing 737 MAX airplanes, along with spare engines to support the fleet," the SpiceJet statement said.

“The airline also signed a 10-year Rate per Flight Hour (RPFH) agreement with CFM Services that covers all LEAP-1B engines powering SpiceJet’s 737 MAX airplanes," it added.

In January 2017, SpiceJet had placed an order for 205 Boeing aircraft valued at $22 billion or Rs1,50,000 crore at list price. With the earlier order for 55 planes and 100 additional 737-8 MAX aircraft, the airline firmed up order for 155 planes, besides purchase rights for 50 B737-8 MAX and wide body aircraft.

“The CFM56 engines we currently operate have been a highly valued asset for us over the years," SpiceJet’s chairman Ajay Singh said adding, “From what we have seen so far, the LEAP-1B is living up to its promises for efficiency and reliability."

SpiceJet, which currently has 60 aircraft (38 Boeing 737 and 22 Bombardier Q 400), controls 14.48% market share of the domestic air travel market in India.

The airline currently operates a fleet of more than 38 CFM56-7B-powered Boeing 737 NG family aircraft.

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