International Aero Engines confirmed that Jetstar Airways, a wholly-owned subsidiary of Qantas Airways, has chosen the V2500 to power a new fleet of 50 additional Airbus A320 family aircraft, with options and purchase rights on up to 40 more aircraft. The Engine Purchase Agreement, which is for the latest V2500 SelectOne build standard, is worth around US$1.5 billion if all the options and purchase rights are exercised. The aircraft will be distributed amongst the mainline Jetstar fleet based in Australia and New Zealand, as well as with Jetstar Asia/Valuair of Singapore that is an existing equity investment by the Qantas Group. In addition, the airline has signed a US$2 billion long-term IAE Aftermarket Services agreement covering these new engines, and also those installed on 40 IAE-powered aircraft that the Jetstar businesses currently operate.
IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney, Rolls-Royce, Japanese Aero Engines Corporation and MTU Aero Engines.