Akasa Air selects CFM’s LEAP-1B engine for Boeing planes ahead of India launch

India's newest airline Akasa Air, led by billionaire investor Rakesh Jhunjhunwala, on Wednesday announced the purchase of CFM LEAP-1B engines to power its Boeing 737 MAX airplanes. The agreement that also includes spare engines and long-term services agreement is valued at nearly $4.5 billion at list price.

With this purchase and services agreement, Akasa Air will have from day-1 of its operations an innovative and comprehensive maintenance programme delivered by CFM, which is a 50-50 joint venture between GE and Safran Aircraft Engines.

On Tuesday, Akasa Air announced that it has ordered a total of 72 MAX 737 airplanes from global aerospace company Boeing.

On signing the agreement, Akasa Air CEO Vinay Dube said the airline is pleased to partner with CFM International as it embarks on an exciting journey to launch "the greenest, most affordable and most dependable airline in India".

"The state-of-the-art, high-performance LEAP-1B engine will support our tech-driven culture by enabling real-time engine monitoring and predictive maintenance planning. With this agreement, we now have the foundation to ensure the most competitive and reliable operations in our fast-growing market," said Dube.

Philippe Couteaux, Executive Vice President of Sales and Marketing for CFM International, said, "It'll be a great honour to help launch this new airline with the industry-leading support and reliability that has become a hallmark of CFM International."

As per CFM, to date, nearly 600 engines are operated by airlines from the Indian subcontinent and over 1,700 LEAP engines are on order.

CFM's LEAP engine

CFM's advanced LEAP engine has logged over 12 million engine flight hours in commercial operations. The LEAP-1B engine entered into service on the Boeing 737 MAX in 2017. Over 600 aircraft have been delivered to some 66 operators worldwide and the fleet has logged more than 2.5 million engine flight hours.

"The fleet is providing better fuel consumption and lower CO2 emissions, as well as a significant improvement in noise compared to the best CFM56 engines while maintaining the CFM legendary reliability," a CFM statement said.

Akasa Air's plans

SNV Aviation, which will fly under the brand name Akasa Air, has already received a 'No Objection Certificate' (NOC) from the Ministry of Civil Aviation as it embarks on its journey to offer airline services. Akasa Air plans to offer flights across India, starting early 2022. It aims to be the nation's most "dependable, affordable, and greenest airline".

Jhunjhunwala, arguably the most astute investor of current times, is betting big on India, the world's second-most populous country. India is hugely under-penetrated in air travel as about 8 per cent of India's population fly.

Jhunjhunwala will reportedly invest $35 million (nearly Rs 260 crore) for a 40 per cent stake in Akasa. His team includes, among others, former IndiGo President Aditya Ghosh and former Jet Airways CEO Dube, who is also the director of the holding company SNV Aviation Private Limited.

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