SpiceJet inks $12.5 billion deal with Safran

SpiceJet has entered into a $ 12.5 billion contract with Safran for LEAP-1B engines to power its fleet of 155 Boeing 737 Max planes. The agreement, which covers ten-year rate per flight hour agreement and spare engines, was signed yesterday on the sidelines of French president Emmanuel Macron’s visit to India.

The LEAP-1B engines are manufactured by CFM International, a part of Safran group of France and are the sole engine variant for the 737 Max planes. Under the terms of the agreement, CFM guarantees maintenance costs for all SpiceJet’s LEAP-1B engines on a pay by hour basis.

SpiceJet ordered Boeing 737 Max planes in $ 22 billion deal in January 2017 and is expecting to receive the first aircraft from the order in August and another 14 by next April.