VietJet Air strikes $800 mln engine deal with GE venture

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Budget carrier VietJet Air signed a US$800 million deal on Monday to buy 40 engines from CFM International, a joint venture between General Electric and Snecma, a unit of France's Safran.


The agreement was signed by representatives of GE and CFM in Hanoi under the witness of US Secretary of State John Kerry, who was in Vietnam from December 14 to 16.


Reuters quoted CFM Executive Vice President Gael Meheust as saying the $800 million would cover 28 engines for the Airbus A320s and 12 for the A321 model.


The agreement includes technical and maintenance services, VietJet Air said in a release.


VietJet reached a $9 billion agreement on September 25 with Airbus to buy 92 jets, mostly A320s, for delivery over the next eight years, in what was the latest big order by one of Southeast Asia's most rapidly-expanding airline, Reuters reported.


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