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Vietnam’s Bamboo Airways Inked $2 Billion GE Jet-Engine Deal, Bloomberg reported.
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Vietjet and the US engine supplier also signed US$260 million service contract
Vietnam’s Bamboo Airways JSC will outfit its new Boeing Co. 787-9 Dreamliners with engines made by a General Electric Co. venture in a deal valued at around $2 billion, according to Bamboo Airways CEO Dang Tat Thang.
The signing of the agreement witnessed by Vietnamese President Nguyen Xuan Phuc during his trip to New York City this week to attend the United Nations General Assembly on Tuesday in the U.S, according to Bloomberg.
Bamboo Airways, which began flying in 2019 with the mission of connecting tourist regions in the Southeast Asian nation, is seeking to start commercial flights to the U.S. next year after the coronavirus pandemic waylaid earlier plans. The airline is also in discussions with CFM International Inc., the joint venture between General Electric and France’s Safran SA, for engines and engine-maintenance support for A321neo aircraft, Thang said.
As part of its move into the U.S., the airline is expected to sign cooperation agreements with San Francisco International Airport and Los Angeles International Airport and open a U.S. representative office, according to a company statement. Bamboo Airways also plans to expand its international routes to Australia, the U.K., and Germany.
The airline has 30 firm A321neo orders as well as another 20 options for those jets, plus its Boeing 787 order, according to the carrier.
It signed a deal with Boeing to purchase 10 wide-body 787-9 Dreamliners in February 2019, adding to a previous transaction struck in June the year prior for 20 787 Dreamliners. At the time, Bamboo Airways said it may also consider purchasing 25 narrow-body Boeing 737 Max planes.
In the same day, President Nguyen Xuan Phuc also witnessed the signing of a contract to provide aircraft and engine maintenance service worth US$260 million between new-generation airline Vietjet and CFM International, in the framework of his on-going working trip to the US.
The contract has lifted the total value of cooperation deals between the two sides to US$18.5 billion.
With a long-term strategic partnership, Vietjet and CFM International – a joint venture between General Electric (GE) and Safran, have been and will cooperate in the management of engine maintenance services, engine technology transfer and engineer training towards the goal of turning Vietnam into a centre for aircraft repair and maintenance in the region.
CFM International is one of the world’s leading engine suppliers. It is also the main supplier for Vietjet’s fleet which has nearly 100 most modern aircraft in the world flying on many domestic and international routes.
The strategic cooperation relationship between Vietjet and CFM International has importantly contributed to promoting the bilateral trade relations between Vietnam and the US and to efforts towards balanced bilateral trade.
Cooperating with CFM International is also an important foundation in the sustainable development plan of Vietjet, with the goal of becoming a global airline.
The two sides will continue their negotiations to increase the value of the agreement in the coming time, the Dan Tri Newspaper reported.
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Source: Vietnam Insider