VietJet signs US$4.7 billion in trade deals in the US

Vietnam’s low-cost carrier VietJet Air has signed a contract worth US$3.6 billion with CFM International, a joint venture between General Electric (GE) and Safran Aircraft Engines, on the provision of 215 jet engines accompanied by technical and maintenance services

Vietnam’s low-cost carrier VietJet Air has signed a contract worth US$3.6 billion with CFM International, a joint venture between General Electric (GE) and Safran Aircraft Engines, on the provision of 215 jet engines accompanied by technical and maintenance services over 12 years.

Nguyen Thi Phuong Thao, CEO of VietJet Air, and Gaël Méheust, President and CEO of CFM International, at the signing ceremony.

The signing ceremony was held on May 31 in the presence of Prime Minister Nguyen Xuan Phuc, who is on an official visit to the United States, and US Secretary of Commerce Wilbur Ross.

Touching on the event, Nguyen Thi Phuong Thao, CEO of VietJet Air, noted that the new cooperation deal will create breakthroughs for VietJet’s aircraft fleet in terms of new-age technology, helping to improve the quality of flights and reducing operational costs.

VietJet prioritises using fuel-saving and environmentally friendly airplanes and engines, Thao said, adding that the selected engine line in the new contract will help to save up to 15% of fuel consumption, accompanied by comprehensive services concerning maintenance, technical support and training.

On the occasion, VietJet and GE Capital Aviation Services (GECAS) signed a US$1 billion aircraft financing memorandum of understanding. Accordingly, GECAS will support VietJet to finance, purchase and enter sale and leaseback arrangements for 10 aircrafts ordered by VietJet.

In addition, VietJet signed another US$180 million contract with Honeywell Aviation on the provision and service of auxiliary power units (APU) for its 98 airplanes. According to VietJet CEO Nguyen Thi Phuong Thao, this new deal will ensure VietJet’s fleet is serviced in accordance with leading world standards.