IndiGo to buy jet engines worth US$20 bn from CFM

IndiGo, a leading Indian commercial airliner, announces deal with CFM International, a US-based aircraft engine manufacturer, for procuring LEAP-1A engines to power its aircrafts.

June 17, 2019

IndiGo announced that it has ordered CFM International LEAP-1A engines to power its 280 Airbus A320neo and A321neo aircraft

The contract, valued at more than US$20 billion, is one of the biggest that have been offered by the growing aviation sector

India is the world’s fastest growing civil aviation market with a traffic of over 243 million recorded during 2017-18

This deal strengthens CFM’s presence in India, that has been growing since the first CFM56 engines entered service in India in 1994

IndiGo, a leading Indian commercial airlines, announced on June 17 that it has ordered CFM International LEAP-1A engines to power its 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than US$20 billion. According to a statement by IndiGo, the airline has also signed a long-term service agreement with CFM to support its newly acquired LEAP-1A fleet. This is believed to be the largest ever single-engine order in India. 

India has proved to be the world’s fastest-growing aviation market as per the last financial year. The aviation sector in India currently contributes more than US$70bn to the country’s GDP. By 2020, India is expected to become the 3rd largest civil aviation market as per domestic traffic. To ensure the upward trajectory of growth in the aviation sector, the Government of India has undertaken numerous initiatives, like the Udan scheme for improving regional connectivity. 

Meanwhile, the National Civil Aviation Policy 2016 sets a broad framework to provide safe, secure, affordable and sustainable air travel for passengers and cargoes to India and the world.  It aims to create an ecosystem to make flying affordable for the masses and to increase the volume of domestic ticketing. 

IndiGo finds itself among the fastest growing carriers not only in India but also in the world. With its fleet of over 230 aircrafts, the airline offers around 1,400 daily flights to 54 domestic and 19 international destinations. On the other hand, CFM International is a joint venture of US’ General Electric and France’s Safran SA. It has a long-standing footprint on the Indian subcontinent, with more than 500 CFM56 engines and nearly 60 LEAP engines currently operating in the country.

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