Air Deccan places $500 mn engine order with IAE

MUMBAI: Air Deccan has placed a $500 million order with International Aero Engines (IAE) to power the low-cost airline's to be acquired Airbus fleet of aircraft.

The deal which was inked at the Faranborough air show in London will be extended to cover Air Deccan's existing fleet and an earlier, firm order of 30 Airbus A320 family aircraft.

"The latest engine order is valued at more than $500 million and brings the total firm V2500-powered A320 family aircraft on order to 60," an airline release said on Tuesday.

IAE is a multinational aero engine consortium between Canadian aero-engine major Pratt & Whitney, European conglomerate Rolls-Royce, the Japanese Aero Engines Corporation and MTU Aero Engines.

The "V2500SelectSM" engine is a combined engine upgrade and aftermarket support program which improves fuel burn, reduces operating costs and offers time-on-wing improvements.

Engine upgrades are planned to be released to production in 2008 and will be retrofittable to the in-service fleet, the release added.