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VietJet Air to spend 800 million USD on CFM engines

Vietnam's budget carrier VietJet Air on December 16 agreed to an 800 million USD deal to buy 40 engines from CFM International, a joint venture between General Electric and Snecma, a unit of France's Safran SA.
Vietnam's budget carrier VietJet Air on December 16 agreed to an 800million USD deal to buy 40 engines from CFM International, a jointventure between General Electric and Snecma, a unit of France's SafranSA.

These engines are superior in terms ofperformance, fuel efficiency and environmental impact. They will beinstalled in the Airbus A320/321.

The signingceremony was honoured with the presence of US Secretary of State JohnKerry during his visit to Vietnam. The conclusion of this agreement isan important event in Kerry’s agenda.

Accordingly, besides covering 28 engines for the Airbus A320 and 12 forthe A321 models, this agreement also provides authorised technical andmaintaining services, and is considered a significant milestone in thecomprehensive cooperation between the two nations.

The airline reached a 9.1 billion USD agreement on September 25 withAirbus company to buy 92 jets, mostly A320s, for delivery over the nexteight years, in what was the latest major order by Southeast Asia'srapidly expanding airlines.

Founded in 2007, withtheir inaugural flight taking off on December 21, 2011, VietJet Air wasthe first private airline in Vietnam to operate domestic andinternational flights. Today the airline’s network covers 14destinations within Vietnam, plus an international service to Bangkok.In its first two years, the airline received 3 million passengers.

Luu Duc Khanh, managing director of VietJet Air, as quoted by VietnamInvestment Review, stated in an interview last August that the airlinehad recorded a profit of 5.7 million USD in the first seven months ofthis year, and intended to develop into a multi-national aviation group.

VietJetAir is aiming for a stock market listing in either Hong Kong or Singapore in 2015 to fund expansion beyond Vietnam.-VNA
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