IndiGo had signed a deal with Pratt and Whitney in 2011 to power the first batch of 150 A320neo family aircraft. The A320neos are powered by Pratt & Whitney’s PurePower PW1100G engines, and the A321neos are powered by Pratt & Whitney PurePower PW1133G engines. The induction of A320neos powered by PW1100G, the new Geared Turbofan technology engines, did not go as smoothly as planned. IndiGo had to replace 69 engines between mid-2016 and early 2018.
In 2019, when it was time to make a selection for engines again, IndiGo selected CFM International’s LEAP-1A engines and signed a long-term service agreement for engines to power 280 A320neo family aircraft. This massive USD 20 billion order was placed with CFM at the Paris Airshow 2019 for Leap 1A engines to power 280 A320neo and A321neo aircraft. Delivery of these engines started August 2020 onwards. This was the world’s largest order for engines to date when signed. The contract also included spare engines and an overhaul support agreement.
IndiGo operates 260 Airbus narrowbody aircraft at the moment. It has another 211 A320neo and 358 A321neo on order (XLR included, as of April 2021 closure), today announced another engine order for its fleet of 310 new Airbus A320neo, A321neo, and A321XLR aircraft. IndiGo today announced that it had selected CFM International LEAP-1A engines to power 310 upcoming A320neo family aircraft. The agreement includes 620 new installed engines and associated spare engines and a long-term, multi-year service agreement.
On this occasion, Ronojoy Datta, CEO of IndiGo, had to say,
This is a pivotal milestone that reflects our long-standing commitment to rapidly strengthen our network both domestically and internationally. This expansion will serve as a catalyst to boost India’s economic growth and the mobility of its people. India’s aviation sector is poised to grow from strength to strength, and we will continue on our mission of building a world-class transportation network. We are here to deliver on our promise of providing low fares and a courteous, hassle free experience to all our customers.
Therefore, this new agreement secures the LEAP-1A engine and its long-term service agreements for a total of 590 IndiGo A320neo family aircraft. The airline is currently operating seven A320neo and 15 A321neo with LEAP-1A engines. This new agreement will secure LEAP-1A engines and service agreements for itsA320neo family aircraft to be delivered from 2023 onwards.
Gaël Méheust, president and CEO of CFM International, said on the occasion,
We are incredibly honored by IndiGo’s renewed trust in CFM. We are fully committed to helping IndiGo optimize its operations by providing them with the industry-leading asset utilization, fuel efficiency, and overall cost of ownership.
One of the reasons this is a win-win situation for all three parties involved (Airbus, CFM and IndiGo) is that the Airbus A321XLR engine is the same as the A320neo engine, and no modifications are required, so it simplifies the use of engines and optimises it for IndiGo, the eventual customer.
This is the most significant single order for CFM International in terms of the number of engines, but in a world where everyone throws up the listed price to put out the size of the deal, neither parties have published the size of the deal on this one. I’d believe in a crumbling aviation environment. IndiGo would have been able to drive a good bargain for themselves with the volumes they are talking, on the price.
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