Air India Finalizes Deal With CFM for 400 Aircraft

Jul. 20—NEW DELHI — Air India has finalized the agreement with US-based engine manufacturer CFM International for engines for 400 aircraft, the engine maker said on Thursday.

CFM's LEAP engines will power the Tata Group-backed airline's new fleet of 210 Airbus A320neo/A321neos and 190 Boeing 737 MAX family aircraft.

The deal was first announced in February.

The two companies have also signed a multi-year services agreement that will cover the airline's entire fleet of LEAP engines.

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.

"The introduction on a greater scale of the LEAP engine as well as our services agreement will help us to optimize our operations in terms of environmental footprint and operational cost, while benefiting our customers," Chief Executive Officer and Managing Director of Air India Campbell Wilson said.

"The renewed trust of Air India is a major milestone in CFM history. This order strengthens our presence in India...," said Gaël Méheust, president and Chief Executive Officer of CFM International.

The LEAP engine promises 15-20% better fuel consumption and lower carbon emissions, as well as a reduction in noise compared to previous generation engines. The LEAP engine first entered service in 2016.

The Tata Group acquired 100% stake in Air India and Air India Express under a strategic divestment programme led by the Indian government in January 2022. Under a transformational plan called Vihaan.AI, Air India is looking to expand its fleet size by threefold and increase its domestic and international market share to 30% in five years.

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Updated: 20 Jul 2023, 06:16 PM IST

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