Jetstar signs on for more IAE engines

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Jetstar has ordered International Aero Engine IAE V2500 engines for the 50 Airbus A320s it has on order, further cementing its relationship with IAE.

Qantas Airways' low-cost carrier says it has chosen V2500 engines to power "a new fleet of 50 additional A320-family aircraft with options and purchase rights on up to 40 more aircraft".

If all the options and purchase rights are exercised, this deal is worth $1.5 billion, it says.

"In addition, the airline has signed a $2 billion long-term, IAE aftermarket services agreement covering these new engines and also those installed on 40 IAE-powered aircraft" that Jetstar already operates.

The IAE sales and service agreements cover the A320s in Jetstar Australia's fleet as well as those assigned to Jetstar's affiliate carriers in New Zealand and Singapore, it adds.