SpiceJet signed an agreement with France’s Safran to buy aircraft engines worth US$12.5 billion from its venture CFM International. “Link Legal India Law Services was involved in the review and negotiations of the engine purchase agreements,” said partner Durgesh Singh.
“[This included] the general terms agreement (GTA), the letter agreement (LA) which is the customized terms document for SpiceJet, side letters, as well as the rate per unit flight hour (RPFH) agreement; these documents comprised the engine purchase”.
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The RPFH is techno-legal document and its review and negotiation entailed sitting with SpiceJet’s technical team to put on paper their technical requirements and front ending the negotiations with CFM, which were represented by CFM, Safran and GE Aviation’s representatives. “The review and negotiations of the GTA, LA and RPFH was also from the perspective of Indian law and enforceability,” Singh added.
The deal was part of series of agreements executed between Indian and French companies during French President Emmanuel Macron’s visit to India.
The airline company will buy CFM International’s LEAP engines to power its 155 Boeing 737 MAX jets, along with spare engines to support the fleet. CFM International is a joint venture between GE Aviation and Safran, and supplies engines exclusively for the Boeing 737 MAX.
Link Legal was the sole Indian counsel acting for SpiceJet. Singh was supported by associates Kashish Arora and Rahul Dave. CFM was represented by its in-house team and by Safran’s and GE’s in-house team.
“We are looking forward to introducing the new LEAP-1B into our fleet,” said Ajay Singh, chairman and managing director at SpiceJet. “We hope they provide us with unmatched service reliability while keeping our costs in check to ensure profitable operations.”
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