VietJet Air Signs $3.6Bn Deals for CFM Engines, 12-Year Support

VietJet Air Signs $580 Million CFM56-5B Engine Deal

(Source: CFM International; issued May 31, 2017)

WASHINGTON, D.C. --- 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.

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. "

VietJet Air is the first airline in Vietnam to operate as a new-age airline with low cost and diversified services to meet the customers' demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers.

Currently, the airline boasts a fleet of more than 45 aircraft, including A320s and A321s, and operates more than 200 flights each day. It has opened more than 40 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, China and Myanmar.

CFM56-5B engines are a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. CFM, the world's leading supplier of commercial aircraft engines, has delivered nearly 30,900 engines to date. The CFM56-5B engine powers every model of the Airbus A320ceo family and has been chosen to power nearly 60% of all A320 family aircraft in service or on order.

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VietJet Air Signs $3 Billion Long-Term CFM LEAP-1B Engine Support Agreement

(Source: CFM International; issued May 31, 2017)

WASHINGTON, D.C. --- Vietnam’s VietJet Air today concluded a 12-year Rate Per Flight Hour (RPFH) maintenance agreement with CFM International to support the LEAP-1B engines that will power the airlines new fleet of 100 Boeing 737 MAX aircraft scheduled for delivery between 2019 and 2023. The agreement is valued at $3 billion U.S. at list price and includes a total of 215 engines.

The signature ceremony was witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc, currently visiting the United States, and U.S. Secretary of Commerce Wilbur L. Ross, Jr.

Rate per Flight Hour agreements are part of CFM’s portfolio of flexible aftermarket support offerings. Throughout the term of the agreement, CFM guarantees maintenance costs for the all VietJet Air’s LEAP-1B engines on a dollar per engine flight hour basis.

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

“We know that CFM will be a great partner as we begin to introduce the LEAP-1B into our fleet,” said Madame Thao Nguyen Thi Phuong Thao, CEO of VietJet Air. “This RPFH agreement is an important part of that process. Knowing from the beginning that the maintenance costs of our new fleet will be predictable and what those costs will be put us in a much better position to plan our operations and implement our growth strategy.”

“We appreciate the high level of confidence this agreement shows in CFM and in our ability to support VietJet over the long term,” said Gaël Méheust, president and CEO of CFM International. “It has been an honor to be a part of the very dynamic and exciting team for the last six years. It is a privilege to know that this very special relationship will continue for many more years to come.”

VietJet Air is the first airline in Vietnam to operate as a new-age airline with low cost and diversified services to meet the customers’ demands. Currently, the airline boasts a fleet of more than 45 aircraft, including A320s and A321s, and operates more than 200 flights each day. It has opened more than 40 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, China and Myanmar.

LEAP-1B engines are a product of CFM International, a 50/50 joint company between GE and Safran Aircraft Engines. The LEAP engine family is the fastest-selling in aviation history with more than 12,230 orders place through April 2017.

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