Pratt & Whitney Lands JetBlue V2500 Long-Term Services Agreement
JetBlue has tapped Pratt & Whitney to maintain its newer IAE V2500 engines under a 13-year, fixed-price agreement, the last maintenance-related piece in a series of sweeping cost-reduction moves.
The deal covers 230 engines that power part of the airline’s 193-aircraft Airbus A320ceo fleet.
“We are pleased to announce that we have entered into a long-term maintenance agreement for our SelectOne engines, helping us manage through one of the largest items of our external spend,” JetBlue CFO Steve Priest said. “This agreement provides predictable maintenance and supports efficient operations needed to serve our customers for many years to come.”
The announcement comes almost exactly one year after JetBlue unveiled a 13-year deal with MTU Aero Engines to maintain its older, or “pre-select,” V2500 engines.
The agreements are part of JetBlue’s structural cost program, launched in late 2016 with a goal of cutting as much as $300 million annually. The airline entered 2020 projecting $314 million in total savings for the year, including $100-125 million maintenance-related cost-savings initiatives.
JetBlue also struck a new engine-services agreement with General Electric (GE) that targets CF34 engine life-limited parts (LLPs) costs, factoring in the retirement of JetBlue’s Embraer E190 fleet. JetBlue also has agreements in place with Pratt & Whitney to overhaul the PW1000G geared turbofans that power its A321neos and future A220 fleets. The carrier is replacing its 60 E190s with Airbus A220s, starting in 2020.