Home / Companies / News /  Rakesh Jhunjhunwala's Akasa Air picks CFM's LEAP-1B engines for its Boeing planes
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Billionaire investor Rakesh Jhunjhunwala-backed Akasa Air on Wednesday announced the purchase of CFM LEAP-1B engines to power its Boeing 737 MAX airplanes it recently bought. The agreement also includes spare engines and long-term services, the companies said in a joint statement.

The country's new carrier has signed an agreement with CFM International for its LEAP-1B engines in a deal valued at nearly $4.5 billion at list price.

The LEAP-1B engine entered into service on the Boeing 737 MAX in 2017, and over 2.5 million engine flight hours have been logged, the companies added.

SNV Aviation, which will fly under the Akasa Air brand, expects to begin operations next year after getting initial clearance from the civil aviation ministry to launch the country's latest ultra-low cost carrier.

Upon signing the agreement, Akasa Air CEO Vinay Dube said the carrier is pleased to partner with CFM International as it embarks on an exciting journey to launch "the greenest, most affordable and most dependable airline in India".

"The state-of-the-art, high-performance LEAP-1B engine will support our tech-driven culture by enabling real-time engine monitoring and predictive maintenance planning. With this agreement, we now have the foundation to ensure the most competitive and reliable operations in our fast growing market," Dube added.

The low-cost airline had placed an order for 72 Boeing 737 MAX jets on Tuesday, valued at nearly $9 billion at list prices.

Akasa Air has ordered two models from the 737 MAX family, the 737-8 and the high-capacity 737-8-200.

Boeing's 737 MAX returned to the skies last year after the entire fleet was grounded for 20 months following two crashes -- in Ethiopia and Indonesia -- that left 346 people dead.

"We are honoured that Akasa Air... has placed its trust in the 737 family to drive affordable passenger service in one of the world's fastest-growing aviation regions," said Stan Deal, president and CEO of Boeing Commercial Airplanes, according to the statement.

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