14:21 (GMT +7) - Tuesday 20/11/2018

Business

FLC negotiating partnership with GE

Released at: 14:06, 12/09/2018

FLC negotiating partnership with GE

Photo: FLC Group

Partnership to provide engines and leased aircraft to FLC's Bamboo Airways.

by Ngoc Lan

Multinational General Electric (GE) is in the process of negotiating a partnership agreement with the FLC Group and Bamboo Airways to provide engines and leased aircraft.

FLC is considering choosing GE’s engines not only for its 20 Boeing 787-9 Dreamliners but also the 24 A321neo aircraft it purchased from Airbus.

Mr. Trinh Van Quyet, Chairman of the FLC Group, said GE is a large and reputable manufacturer of engines globally. “In addition to Rolls Royce and other suppliers, GE is one of the FLC Group’s top choices,” he added. “We hope GE will become a comprehensive partner in many areas.”

Meanwhile, GE Capital Aviation Services (GECAS, a subsidiary of GE) will be the aircraft leasing unit for Bamboo Airways, one of the key steps for the airline to take off this year.

Mr. Krish Parampathy, Chairman of GECAS, said that GECAS currently has 220 A320/321 aircraft in production and they will be handed over in the years to come. “We therefore have the capacity and the commitment to be ready to provide the number of aircraft Bamboo Airways wants,” he said. “We recognize the opportunities in and the potential of Vietnam’s aviation industry, and hope to build strong cooperation with the FLC Group and Bamboo Airways in the future.”

After signing the first lease and handover contract in the fourth quarter, the two sides will continue negotiations to lease 20-30 aircraft in the period from now and 2020.

GECAS is also ready to assist Bamboo Airways in providing information about international and Vietnamese aviation markets and in studying future international routes, especially direct flights to the US.

The government recently permitted the establishment of Bamboo Airways, in accordance with a request from the Ministry of Planning and Investment (MPI) and consensus among other relevant ministries.

The FLC Group and Bamboo Airways signed an agreement in March with Airbus to purchase 24 A321neo aircraft, in the presence of Party General Secretary Nguyen Phu Trong, and will also purchase 20 Boeing B787-9 Dreamliners from Boeing in a deal witnessed by Deputy Prime Minister Vuong Dinh Hue in June, to prepare for take-off in October.

Established in 2017, Bamboo Airways has charter capital of VND700 billion ($31.1 million) and is a pioneer in the hybrid model. Passengers will be offered the same facilities as traditional airlines at only a slightly higher cost than on budget carriers.

In its first year of operations, Bamboo Airways is expected to operate eight to ten routes to priority domestic destinations such as Quang Ninh, Hai Phong, Thanh Hoa, Quy Nhon, and Nha Trang.

In subsequent years it will add international routes to Japan, South Korea, China, Thailand, Hong Kong and Taiwan and by 2023 will open long-haul routes to the US, Europe and Africa.

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