PARIS -- (Marketwired) -- 06/18/13 -- Paris Air Show -- Spirit Airlines, North America's leading ultra low-cost airline, and IAE International Aero Engines AG have amended their existing V-Services(SM) Fleet Hour Agreement to include coverage for 86 incremental V2500 engines.
Spirit's entire current and future fleet of A320 family aircraft powered by V2500 engines will be covered by an IAE V-Services(SM) aftermarket agreement. The deal is valued at approximately $700 million.
"IAE has proudly powered Spirit's fleet for over eight years, and we are delighted to expand our existing V-Services(SM) Fleet Hour Agreement with them," said IAE President Jon Beatty. "The amended FHA demonstrates the close partnership Spirit and IAE have formed over the years. It's an honor to be part of their continued growth and success."
"Spirit Airlines operates a unique ultra low-cost carrier business model and continues to deliver consistently strong financial performance," said Spirit Airlines CEO Ben Baldanza. "Every decision we make is driven by its impact on the bottom line. As such, expanding our IAE FHA coverage to include our A320 aircraft enables Spirit to effectively manage its cost structure and focus on profitable growth."
Through the V-Services(SM) portfolio IAE is able to provide both flexible and optimized engine maintenance/support solutions to our customers. The benefits to the customer include:
- Predictable maintenance cost
- Optimized engine performance including reliability and fuel burn
- Improved marketability
- Increased residual value
About Spirit: Spirit's (NASDAQ: SAVE) modern fleet, configuration and other innovations enable Spirit to burn less fuel per seat than competitors, making Spirit one of the most environmentally friendly U.S. carriers. Spirit's all-Airbus fleet operates approximately 250 daily flights to over 50 destinations in the U.S., Latin America and Caribbean.
About IAE: IAE is a multinational aero engine consortium whose shareholders are comprised of Pratt & Whitney (NYSE: UTX), Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation and MTU Aero Engines. To date, more than 5,700 engines have been delivered and more than 1,600 more engines are on order with close to 200 customers around the world.
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