Image result for FRANCE'S SAFRAN EXPECTS MORE MEGA DEALS IN INDIAN COMMERCIAL AEROSPACE MARKET

Buoyed by the USD 12.5 billion
deal with SpiceJet, French major Safran’s CEO Philippe Petitcolin has said it
expects more such big deals and higher share in the Indian commercial aerospace
market.

Safran,
which has a significant presence in India across commercial aerospace and
defence segments, has just inked a USD 12.5 billion (over Rs 81,000 crore)
worth deal with no-frills airline SpiceJet for CFM aircraft engines.

The Safran-SpiceJet deal, under which around 340
engines are to be supplied to the budget carrier, is also one of the biggest in
Indian aviation sector.

“Of course, it is a big
deal and when you a sign a deal of more than USD 12 billion you are extremely
happy… It is extremely important for CFM, Safran and General Electric, which
is our partner in this joint venture. We have to produce 340 engines even if it
is over a long period of time, it is something extremely exciting for a company
like ours,” Safran Group CEO and Director Philippe Petitcolin told
PTI.

Speaking
soon after signing the pact with SpiceJet, he also said that India is a growing
country in terms of commercial aerospace market.

Indian
carriers have substantial orders for new aircraft as they embark on ambitious
expansion plans amid growing demand in the domestic aviation space. They are
likely to induct more than 900 aircraft in the coming years.

To a
query on whether Safran expects more deals like that of with SpiceJet,
Petitcolin replied in the affirmative.

Yes of course. India is a growing country in
terms of commercial aerospace market. You have a growth in the range of 17 per
cent a year. We need more and more aeroplanes. We are one of the two leaders
(in engine manufacturing) in the world. We have a market share of over 70 per
cent in the short medium range aircraft segment. We wish to have a better and
higher market share in India,” he said.

SpiceJet
and Safran Group have now finalised the purchase of LEAP-1B engines to power a total
of 155 Boeing 737 MAX planes along with spare engines to support the fleet. The
deal was inked at the Indo- French Economic Partnership signing ceremony on
Saturday on the occasion of French President Emmanuel Macron visit to
India.

CFM engines are manufactured by CFM
International, a joint venture between Safran and General Electric.

The
airline has also signed a ten-year Rate per Flight Hour (RPFH) agreement with
CFM Services that covers all LEAP-1B engines powering SpiceJet’s 737 MAX
planes.


RPFH agreements are part of CFM’s portfolio of
flexible aftermarket support offerings.

Under the terms of the agreement, CFM guarantees
maintenance costs for all SpiceJet’s LEAP-1B engines on a pay by hour basis.

According to Safran India’s
website, more than 1,000 CFM 56 and LEAP engines are in service. The company’s
joint venture with Hindustan Aeronautics Ltd (HAL) in Bengaluru manufactures
CM56 and LEAP components for CFM International. Safran and GE, to provide
maintenance training for operators of CFM56 engines.