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Vietjet signs billion dollar deals with US partners

Released at: 15:25, 01/06/2017

Vietjet signs billion dollar deals with US partners

Photo: Vietjet

Budget carrier puts pen to paper on three agreements during PM's visit to US.

by Doanh Doanh

The Vietjet Aviation Joint Stock Company (Vietjet Air) has signed an agreement with CFM International - a joint venture between General Electric (GE) and Safran - on supporting 215 engines to power the airline’s fleet, witnessed by Prime Minister Nguyen Xuan Phuc and US Secretary of Commerce Wilbur L. Ross, Jr in Washington D.C.

The 12-year agreement is valued at $3.58 billion and includes other technical services, engines, and component maintenance.

“We are orienting our fleet to aircraft families and engines that have efficient fuel consumption and are environmentally-friendly,” said Vietjet’s President and CEO Nguyen Thi Phuong Thao. “The engines under today’s agreement will help us save up to 15 per cent of fuel consumption as well as obtain other comprehensive services in technical support, maintenance, and training.”

Vietjet’s fleet will be able to enjoy new technical and technological advances that enhance flight quality and operational reliability and reduce costs. “We strongly believe that this agreement will promote economic and trade exchange between the two countries and create millions of jobs in both,” she added.

“We appreciate the high level of confidence this agreement shows in CFM and in our ability to support Vietjet over the long term,” said Mr. Gaël Méheust, President and CEO of CFM International. “It has been an honor to be a part of the very dynamic and exciting team for the last six years. It is a privilege to know that this very special relationship will continue for many more years to come.”

Vietjet and GE Capital Aviation Services (GECAS) under GE also signed a memorandum of understanding in aircraft financing worth $1 billion. GECAS will support Vietjet in finance and/or purchases and enter into leaseback arrangements for ten aircraft ordered by Vietjet.

Vietjet and Honeywell Aviation also inked an agreement on auxiliary power unit supply and technical maintenance to power the airline’s 98 aircraft. Worth $180 million, the agreement is aimed at helping Vietjet’s fleet be maintained under world standards.

GECAS is a world leader in aviation leasing and financing. With over 45 years of experience, it offers a wide range of aircraft types, including narrow-bodied, wide-bodied, regional jets, turboprops, freighters, and helicopters, plus multiple financing products and services, including operating leases, purchase/leasebacks, secured debt financing, capital markets, engine leasing, airframe parts management, and airport/airline consulting. GECAS owns or services a fleet of over 1,950 aircraft serving around 270 customers in over 75 countries.

Established in 2007, Vietjet Air officially launched operations in December 2011. Five years on, it has flown over 35 million passengers and been awarded 32 domestic and nine international accolades.

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