SpiceJet inks $12.5 bn deal with CFM International for engines

New Delhi, March 10 (IANS) Low-cost public carrier SpiceJet on Saturday said it has signed a $12.5 billion deal with CFM International to purchase 'LEAP-1B' engines for 155 units of Boeing '737 MAX' airplanes, along with spare engines to support the fleet.

CFM International is an aircraft engine developer, with 50:50 ownership of US-based General Electric and France-based Safran Aircraft Engines.

"The airline also signed a 10-year rate per flight hour (RPFH) agreement with CFM Services that covers all LEAP-1B engines powering SpiceJet's 737 MAX airplanes," SpiceJet said in statement here.

Under the RPFH agreement, CFM International guarantees maintenance costs for all SpiceJet's LEAP-1B engines on a pay by hour basis, it said.

"We are looking forward to introducing the new LEAP-1B into our fleet," said Ajay Singh, SpiceJet's Chairman and Managing Director, adding that LEAP-1B is living up to its promises for efficiency and reliability.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)