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Vietjet signs $6.5bn deal with Airbus

Released at: 08:00, 04/11/2018 BUSINESS SPOTLIGHT

Vietjet signs $6.5bn deal with Airbus

Photo: Vietjet

Carrier to purchase 50 more A321neo aircraft.

by Ngoc Lan

New-age carrier Vietjet Air and Airbus have signed a purchase agreement for an additional 50 A321neo aircraft worth $6.5 billion according to the manufacturer’s list price, witnessed by Prime Minister Nguyen Xuan Phuc and French Prime Minister Édouard Philippe.

The agreement is a further step under the memorandum of understanding (MoU) signed previously by the two sides at the Farnborough Air Show in the UK.

It will realize Vietjet’s growth strategies and enhance its operational efficiency and its capacity to expand its flight network, especially on international routes, and serve its development of airline alliances across the Asia-Pacific region, which sees the fastest aviation growth rate in the world.

The A321neo is incorporated with the latest engines, aerodynamic advances, and cabin innovations and offers a reduction in fuel consumption of at least 15 per cent per seat and up to 20 per cent in 2020.

As part of the agreement, Airbus will also deploy a series of strategic partnerships with Vietjet, in the training of pilots, technicians and engineers, flight management, and flight safety management.

Mr. Christian Scherer, Chief Commercial Officer at Airbus, said Vietjet’s preference for Airbus aircraft is a great endorsement of the A321 in the fast-growing market. “We are honored to be a long-term partner of Vietjet in its success and are pleased to finalize this new order,” he added.

Vietjet and CFM International also signed an MoU for long-term LEAP-1B engine support worth $5.3 billion according to the manufacturer’s list price.

The MoU includes spare engines and support packages to facilitate the airline’s already-ordered new and modern aircraft.

CFM International has provided engines for Vietjet’s modern aircraft since the airline commenced operations in late 2011, and it currently operates a fleet of 65 CFM56-powered aircraft.

                                

                                                            Vietjet Air and CFM International signed an MoU for long-term engine support

Mr. Philippe Couteaux, Vice President of Sales and Marketing at CFM International, said that over the past seven years, CFM has worked closely with Vietjet to introduce several support programs in terms of technical management, training, and fuel efficiency. “The LEAP-1B has been doing extremely well in commercial service in the last 18 months and we believe the engine will prove to be an important asset for Vietjet over the long term,” he noted. “We certainly appreciate the high level of confidence this agreement shows in CFM and we look forward to further strengthening this very special relationship in the years to come.”

Vietjet is the first airline in Vietnam to operate as a new-age airline, offering flexibly-priced tickets and diverse services to meet customer demand.

It currently operates 60 A320 and A321 aircraft on more than 385 flights daily, carrying more than 65 million passengers to date on 103 routes covering destinations across Vietnam and internationally, such as Japan, Hong Kong, Singapore, South Korea, Taiwan (China), mainland China, Thailand, Myanmar, Malaysia and Cambodia.

The airline has plans to expand its flight network across the Asia-Pacific region and has signed contracts to buy new-generation aircraft from prestigious global manufacturers.

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