Tata Group-owned Air India on Thursday signed an agreement with Florida-based Willis Lease Finance to sell 34 old engines and lease back their fresh replacement in order to reduce maintenance costs and avoid unpredictable upkeep visits.
The 34 old CFM56-5B engines have been powering Air India’s four A320ceo aircraft and 13 A321ceo aircraft. Air India had put the purchase order for these 17 planes with European plane maker Airbus in 2006, and they were delivered to then national carrier between 2008 and 2010.
Air India’s Chief Commercial Officer (CCO) Nipun Aggarwal said the transaction with Willis would enable the airline to eliminate the maintenance burden and fully de-risk itself from the maintenance cost uncertainty associated with the engines which were not covered under any “Power By The Hour” programme with the engine makers.
