Qantas affiliate Jetstar inks $3.5-billion deal with International Aero Engines
29 Jan 2010
Jetstar Airways, the low-cost subsidiary of Australian airliner Qantas yesterday signed a $3.5-billion deal with Switzerland's International Aero Engines (IAE) for the supply and service of 50 V2500 engines for its new fleet of Airbus A320 aircraft, with options and purchase rights on additional 40 engines.
The Jetstar Group includes wholly-owned Qantas subsidiaries operating from Australia and New Zealand, Express Ground Handling and partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam. The group operates in 15 countries, flying to over 50 destinations across Asia and Asia Pacific region.
The engine purchase agreement for the latest V2500 SelectOne is valued at $1.5 billion. The new aircraft will be added to the Jetstar fleet in Australia and New Zealand, as well as with Jetstar Asia / Valueair of Singapore.
The deal includes an additional $2 billion long-term services agreement covering the new engines as well as those installed on 40 Jetstar aircraft that are under operation.
Jetstar CEO Bruce Buchanan said, ''V2500 power is the backbone of our narrow-body fleet operation and this new deal, growing the relationship to include comprehensive aftermarket coverage, seals our long-standing partnership.''
He further said that selecting the engine that has the lowest emissions, lowest fuel burn and the quietest engine for the A320 has been a priority for Jetstar and V2500 SelectOne is the environmental leader and therefore a natural choice.