In a move that seems to have become a hallmark of Air India under CEO Campbell Wilson, the national flag carrier again left the industry surprised after it finalised a record order for 800 jet engines with CFM, the Franco-American joint venture between Safran Aircraft Engines and GE Thursday.
As part of the announcement, which comes nearly five months after inking the historic deal for 470 Airbus and Boeing aircraft, the high-bypass turbofan LEAP engine produced by the JV will power Air India’s new fleet of 210 Airbus A320neo/A321neos and 190 Boeing 737 MAX family aircraft.
“We are delighted to celebrate with CFM a major deal that will play a key role in our future development,” a CFM statement quoted Air India CEO Wilson as saying.
“The introduction on a greater scale of the LEAP engine as well as our services agreement will help us to optimise our operations in terms of environmental footprint and operational cost while benefiting our customers,” he added.
The terms of the agreement inked by the companies are inclusive of a multi-year service agreement for the LEAP engines.
Terming the deal “a major milestone in CFM history” the president & CEO of CFM International, Gaël Méheust, said, “This order strengthens our presence in India and commits us to further support Air India’s development with the best CFM standards in terms of reliability, efficiency and customer support.”
Historically, Air India has been a CFM customer since 2002, when the airline began operating Airbus A320ceo aircraft powered by CFM56-5B engines. In 2017, Air India began operating A320neos, becoming the first LEAP-1A-powered operator in India.
The airline currently has 27 LEAP-1A-powered A320neo family aircraft in its fleet.
‘Modi effect’
The announcement comes at a time when the global aviation industry has been battling supply-side challenges owing to the Covid-19-induced lockdowns followed by the Russian military action in Ukraine and the return of demand for air travel, resulting in shortages of aircraft, engines and components.
“Prime Minister Narendra Modi’s recent visits to the US and France may have actually helped in fast-tracking the deal,” an aviation analyst told Business Today requesting anonymity.
CFM claims that LEAP engines provide up to 20 per cent better fuel consumption, lower CO2 emissions and offer significantly reduced noise compared to previous-generation engines.
Other than Air India, the country’s largest airline by fleet and market share IndiGo has also switched over to CFM from Pratt & Whitney since 2019.