Honeywell (NYSE: HON) signed an agreement with VietJet Air for 98 auxiliary power units for the airliner's new fleet of Airbus A320 aircraft. Honeywell currently supplies VietJet Air with auxiliary power units (APUs) across the airline's entire fleet of 135 Airbus A320s. This new agreement runs through 2022 and includes maintenance servicing for 12 years. The total value of the contract is over $100 million.
Vietnam Prime Minister Nguyen Xuan Phuc attended the event as part of his visit to the U.S. to promote bilateral business relations between the countries. The prime minister's attendance recognized Honeywell for its long-term commitment to supporting Vietnam's growing aerospace industry and close partnership with VietJet Air.
"Our partnership with Honeywell began in 2014 when they were selected to supply, manage and maintain their 131-9A APUs for our fleet of 37 Airbus A320/A321 aircraft. Today, we signed our second agreement with Honeywell for more of its industry-leading APUs, which have proven to reduce operational costs and improve aircraft performance," said Nguyen Thi Phuong Thao, president and CEO, VietJet Air. "Our long-standing partnership with Honeywell is also a testament to Vietnam's strong and positive relations with the U.S., and we look forward to many more years of deepening this relationship."
By selecting Honeywell's most popular APU, the 131-9A, VietJet Air will benefit from increased operational reliability, lower maintenance costs over its life cycle and significant fuel savings. The 131-9A APU's proven reliability and enhanced operability will also help boost safety and comfort for VietJet Air's passengers and reduce flight delays and cancellations. The airline will also benefit from optimized operational costs across its fleet through direct support from Honeywell's APU maintenance and services offerings.
"Vietnam is a priority market and key high-growth region for Honeywell, and we are committed to expanding the region's commercial flight capabilities and helping to meet its long-term goals for the industry through our global maintenance, repair and overhaul network," said Brian Davis, vice president, Airlines, Asia Pacific, Honeywell Aerospace. "We are confident that this agreement will help VietJet Air maximize the operational efficiency of its Airbus A320 fleet and bring increased comfort and safety to its passengers, and keep it ahead of the curve in the airline industry."
In 2015, VietJet Air also signed a Memorandum of Understanding with Honeywell to provide APUs and avionics for the airline's future fleet. In March, Airbus designated the Honeywell 131-9A APU as standard equipment for its A320 family of aircraft.
Source: Honeywell International, Inc. (NYSE: HON)
Date: May 31, 2017