VietJet Air signs $580M CFM56-5B engine deal

As part of a special ceremony here today witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc and U.S. Secretary of Commerce Wilbur L. Ross, Jr., VietJet Air announced an order for 20 CFM International CFM56-5B engines to power 10 new Airbus A321ceo aircraft.  The agreement is valued at $580 million U.S, including 20 installed engines, two spare engines and a long-term support agreement.

The aircraft order was announced in September 2016.

Today’s announcement includes an expansion of the airline’s existing 12-year Rate Per Flight Hour agreement to encompass the 22 additional engines.  Under the terms of the RPFH, CFM guarantees maintenance costs for the all VietJet Air’s CFM56-5B engines on a dollar per engine flight hour basis.

Related Research on ASDReports.com:

Flight Inspection (FI) Market - Global Forecast to 2022

Based in Ho Chi Minh City, VietJetAir has been a CFM customer since it commenced operations in late 2011 with leased CFM56-5B-powered A320s and currently operates a fleet of 40 aircraft.

“CFM has been a real partner in our growth and we are very pleased to further expand our relationship with them.” said Madame Thao Nguyen Thi Phuong Thao, CEO of VietJet Air.

“The management team at VietJet Air is to be applauded,” said Gaël Méheust, president and CEO of CFM International.  “The quality of service they provide is world class and they have done a masterful job of creating sustainable growth and profitability for the airline. “

Source: Safran S.A. (Paris: SAF.PA)
Date: May 31, 2017