SpiceJet Orders CFM 737 MAX Engines In $12.5 Bn Deal

Indian airline SpiceJet has signed an agreement with CFM International to buy LEAP-1B engines to power 155 Boeing 737 MAX aircraft in a USD$12.5 billion list price deal.

The order, which includes spares, will equip the airline’s entire 737 MAX fleet.

SpiceJet also signed a 10-year Rate per Flight Hour service agreement with CFM Services that will cover all of the airline’s LEAP-1B engines.

The announcement of the orders came on the first day of French President Emmanuel Macron’s visit to India. CFM International is a 50/50 joint company between France’s Safran Aircraft Engines and GE of the United States.

“We are looking forward to introducing the new LEAP-1B into our fleet,” SpiceJet chairman Ajay Singh said. “From what we have seen so far, the LEAP-1B is living up to its promises for efficiency and reliability.”

SpiceJet ordered 55 737 MAX 8s in 2014 and added another 100-aircraft order in late 2016. The airline currently operates a fleet of 38 CFM56-powered Boeing Next Generation 737 aircraft.