India’s SpiceJet, US-based CFM sign US$12.5bn deal

India’s budget carrier Spicejet has entered a deal to acquire LEAP-1B engines for 155 Boeing 737 MAX airplanes from CFM International, a joint venture of the USA’s GE Aviation and France’s Safran Aircraft Engines

March 10, 2018

The deal includes a 10-year Rate per Flight Hour (RPFH) agreement with CFM Services that covers all LEAP-1B engines powering SpiceJet’s 737 MAX airplanes.

The new LEAP-1B engines will replace the CFM56 engines currently used in SpiceJet's more than 38 Boeing 737 Next Generation aircrafts, besides powering new aircrafts.

The engine offers a 15 per cent reduction in fuel consumption and carbon dioxide emissions versus current engines and a 50 per cent cut in nitrogen oxide emissions.

The deal was inked at the Indo-French Economic Partnership Signing Ceremony held during French President Emmanuel Macron’s visit to India over March 10-12.

SpiceJet, an Indian low-cost airliner, has signed a US$12.5 billion deal with US-based CFM International for aircraft engines. CFM International is a joint venture between GE Aviation, a unit of General Electric of the USA, and Safran Aircraft Engines, a unit of France’s Safran. SpiceJet said it would buy LEAP-1B engines to power a total of 155 Boeing 737 MAX airplanes, along with spare engines to support its fleet. The deal, announced on March 10th, also includes a 10-year Rate per Flight Hour (RPFH) agreement with CFM Services that covers all LEAP-1B engines powering SpiceJet’s 737 MAX airplanes. Under the agreement, CFM has offered maintenance costs for all SpiceJet’s LEAP-1B engines on a pay by hour basis.

The new LEAP-1B engines will also replace the CFM56 engines currently used in SpiceJet’s more than 38 Boeing 737 Next Generation aircrafts. The shift is expected to improve operational efficiency while reducing costs. The LEAP-1B engine has been selected by Boeing, a US based aerospace company, as the exclusive power plant for the new 737 MAX single-aisle jetliner. The engine offers a 15 per cent reduction in fuel consumption and carbon dioxide emissions versus current engines, a 50 per cent cut in nitrogen oxide emissions, and compliance with the industry’s strict noise standards. The deal comes in line with the Indian Government’s agenda to reduce emission and fuel consumption from the transport sector.

The agreement was inked at the Indo-French Economic Partnership Signing Ceremony held during French President Emmanuel Macron’s first state visit to India over March 10-12. Agreements signed between the nation covered – enhanced cooperation in maritime security; defence and security cooperation and logistics; civil nuclear energy; space research; manufacturing; higher education; skill development; smart cities; railway infrastructure; climate change and e-vehicles. resident Macron’s first state visit to India comes on the occasion of the 20th anniversary of the strategic partnership between between the two countries. Trade between the nations was recorded at US$11 billion during financial year 2016-17.