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Vietjet strikes billion-dollar deals with Boeing & GE

Released at: 14:35, 27/02/2019

Vietjet strikes billion-dollar deals with Boeing & GE

President & CEO Vietjet Nguyen Thi Phuong Thao and President & CEO Boeing Commercial Airplanes Kevin McAllister signed deal for 100 airplanes. Photo: Vietjet

Carrier signs contracts to purchase aircraft and engines during US-DPRK Summit in Hanoi on February 27.

by Doanh Doanh

Vietjet Air and Boeing officially inked a major deal on February 27 for the carrier to purchase 100 new 737 MAX aircraft worth $12.7 billion at manufacturer’s list prices. The signing took place during the US-DPRK Summit in Hanoi.

“We are confident the MAX will help Vietjet grow more efficiently and provide great travel experiences for their passengers,” said Mr. Kevin McAllister, President and CEO of Boeing Commercial Airplanes. “The economic expansion in Hanoi and across Vietnam is impressive. Vietjet and the country’s burgeoning aviation sector are clearly enablers, helping to stimulate travel within Vietnam and connecting Vietnam with the rest of Asia.”

“The deal for 100 new aircraft and other agreements for 200 B737 MAX aircraft today are important moves for us to meet our international flight network expansion plans with a higher capacity, thus offering our passengers more exciting experiences in flying to more new international destinations,” said Vietjet Air President and CEO Ms. Nguyen Thi Phuong Thao.

In addition to aircraft purchases, Boeing will also partner with Vietjet to enhance technical and engineering expertise, train pilots and technicians, and improve management capabilities at the airline and in Vietnam.

Vietjet also ordered 100 B737 MAX in 2016, setting the record for the largest commercial jet purchase in Vietnam’s aviation sector at the time and making it the largest customer of the B737 MAX model in Asia.

Vice Chairman of Vietjet Nguyen Thanh Hung and General Manager and Executive Vice President of CFM International Allen Paxson signed an agreement of engine support.

Also on February 27, Vietjet Air and General Electric finalized an engine order and agreement for long-term CFM International LEAP-1B engine support worth $5.3 billion at manufacturer’s list prices.

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

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

“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,” said Mr. Allen Paxson, General Electric General Manager and Executive Vice President of CFM International. “We certainly appreciate the high level of confidence this agreement shows in General Electric and we look forward to further strengthening this very special relationship in the years to come.”

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