SOURCE: IAE International Aero Engines AG

IAE International Aero Engines AG

July 09, 2012 11:45 ET

UPDATE: Volaris Expands Aftermarket Agreement With IAE

Adds Coverage for 26 Incremental V2500 Engines

GLASTONBURY, CT--(Marketwire - Jul 9, 2012) - FARNBOROUGH AIR SHOW - Volaris, one of Mexico's leading low-cost airlines, and International Aero Engines (IAE), have amended their existing V-Services(SM) Fleet Hour Agreement to add coverage for 26 incremental V2500 engines. 

Volaris' entire fleet of A320 family aircraft powered by V2500 engines are now covered by an IAE V-Services(SM) aftermarket agreement. The deal is valued at approximately US$400 million.

"IAE is delighted to expand our existing V-Services(SM) Fleet Hour Agreement with Volaris to cover its entire fleet of V2500 engines. This amended and expanded FHA demonstrates IAE's commitment to the continued growth and success of Volaris in the years to come," said IAE President Jon Beatty. "In recent years Volaris has not only established itself effectively as a critical element of the Mexican air travel infrastructure, but also has expanded by its growing presence in the United States."

He continued: "Our ability to provide our highly reliable and efficient V2500 engines along with V-Services(SM) aftermarket solutions for customers like Volaris has enabled them not only to succeed as a new airline, but also to continue to grow their presence across the entire continent."

"Volaris is a growing low-cost carrier that focuses on containing costs in order to provide our customers with the lowest fares possible," said Volaris CEO Enrique Beltranena. "Expanding our V-Services(SM) Fleet Hour Agreement with IAE to include all of the engines in our fleet significantly reduces cost and risk to Volaris while ensuring OEM-quality maintenance for our V2500 engines."

Volaris currently has 36 aircraft in their fleet, with an additional 12 on firm order, all powered by V2500 engines.

V-Services(SM) is a portfolio of services that applies the power of IAE's OEM network to provide predictable maintenance costs, optimized engine performance and reliability. On an engine flight hour basis, Fleet Hour Agreements (FHA) provide operators with coverage for shop maintenance events, which reduces the risk of unscheduled maintenance and associated costs. Through FHA, operators have the ability to transfer any risks associated with their V2500 maintenance to IAE. Around 60% of the V2500 fleet in service are covered under the V-Services(SM) Fleet Hour Agreements (FHA).

As Mexico's second largest airline, as measured by available seat miles, Volaris is a leading competitor in not only the domestic Mexican market, but across North America. Its headquarters are located in Mexico City, with operations in the country's largest airports, such as Mexico City, Tijuana, Guadalajara, and Cancun.

VOLARIS is the airline operating the most modern fleet in Mexico, composed of thirty-six Airbus A320 airplanes averaging 4 years in service. The airline serves 62 routes connecting 25 cities in Mexico and 8 in the US, including Los Angeles, Oakland/San Francisco, San José, San Diego, and Fresno in California; Las Vegas, Nevada; Chicago, Illinois; and Orlando, Florida. The carrier started operations in March 2006 and has over 2,300 Ambassadors -- or employees.

IAE is a multinational aero engine consortium whose shareholders are comprised of Pratt & Whitney (NYSE: UTX), Japanese Aero Engines and MTU Aero Engines. To date, more than 5,000 engines have been delivered and nearly 2,000 more engines are on order with close to 200 customers around the world. 

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