Indian budget airline Akasa Air revealed on Wednesday that it has signed an agreement with engine maker CFM International for the sale of their LEAP-1B engines. These engines will be used to power Akasa Air’s recently-purchased 737 MAX airplanes.
The deal, worth almost $4.5 billion, includes the sale of spare parts as well as long-term maintenance services, the companies revealed via a joint statement.
This agreement comes one day after Akasa Air placed an order for 72 737 MAX aircrafts worth almost $9 billion. Backed by billionaire investor Rakesh Jhunjhunwala, the ultra-low-cost carrier is looking to take advantage of the steady recovery that the travel industry is undergoing following the pandemic outbreak in 2020.
Akasa Air was formed as a result of Jhunjhunwala’s ambition to tap into India’s domestic air travel market. Jhunjhunwala’s, widely known as “India’s Warren Buffett”, reached out to former chief executives of Jet Airways and IndiGo, the country’s biggest carrier, and together they formed Akasa Air.
The airline’s bulk order 737 MAX airplanes are not the only step that Akasa Air has taken towards expanding its market reach. The company’s subsidiary, SNV Aviation, will begin flying in 2022. This comes after the company received approval from the civil aviation ministry to begin operations.
