Vietjet Air, CFM International reaffirm $8 bln deal for 400-plus LEAP-1B engines

Vietnam’s budget airline Vietjet and CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace, have reaffirmed the commitment to supply more than 400 LEAP-1B engines and technical engine services to power the airline’s narrow-body fleet.

The deal had an estimated total value of $8 billion, Vietjet said in a statement on Tuesday.

The signing ceremony took place at the Élysée Palace in Paris in the presence of French President Emmanuel Macron and Party General Secretary and President To Lam, who was on an official visit to France on October 6-7.

The engines are from two aircraft orders previously announced in 2016 and 2018, and delivery of the jets is scheduled to begin in 2025.

Vietjet Air has been a longstanding CFM customer, currently operating 56 Airbus A321ceo and 17 A320ceo aircraft equipped with CFM56-5B engines.

The CFM LEAP engine family delivers 15 to 20% lower fuel consumption and CO2 emissions, as well as a significant improvement in noise, compared to previous generation engines, according to the statement.

The deal with CFM International lengthens the list of agreements that Vietjet has struck in recent months.

Earlier this month, Vietjet reached a deal with U.S.-based Castlelake, a global alternative investment manager with extensive experience in aircraft investing, leasing and servicing, to finance four aircraft valued at $560 million to be acquired by the airline. The deal was announced during To Lam’s state visit to Ireland.

Last month, Vietjet and U.S.-based Honeywell Aerospace Technologies entered a cooperation agreement valued at $1.1 billion to provide avionics and aviation technical services for Vietjet’s modern and fuel-efficient fleet.

In July, Vietjet and Rolls-Royce, a leading British aerospace and defense company, signed an agreement for 40 Trent 7000 engines and the TotalCare engine service to power the 20 new A330neo aircraft. The aircraft were worth a total of $7.4 billion by the manufacturer’s list price.