VietJet Signs MoU for CFM LEAP-1B Long-term Engine Support Agreement
• First LEAP-powered MAX delivery scheduled for 2019
HANOI, Vietnam. — 6 November 2018 — Vietnam's VietJet and CFM International today signed a Memorandum of Understanding to extend the airline’s current long-term support agreement to include potential additional LEAP-1B engine orders. Once fully executed, the agreement, which includes spare engines, could have a value of up to $5.3 billion U.S.
The signature ceremony was witnessed by French Prime Minister Édouard Philippe currently visiting Vietnam’s Prime Minister Nguyen Xuan Phuc.
Rate per Flight Hour agreements are part of CFM’s portfolio of flexible aftermarket support offerings. Throughout the term of the agreement, CFM would guarantee maintenance costs for all VietJet’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 65 CFM56-powered aircraft.
“The LEAP-1B has been doing extremely well in commercial service in the last 18 months and we believe the engine will prove to be an important asset for VietJet over the long term,” said Philippe Couteaux, vice president of Sales and Marketing for CFM International. “Over the past seven years, CFM has worked closely with VietJet on its CFM56 fleet to introduce several support programs in terms of technical management, training, and fuel efficiency. We look forward to extending this to the LEAP-1B fleet. We certainly appreciate the high level of confidence this agreement shows in CFM and we look forward to further strengthening this very special relationship in the years to come.”
Vietjet is the first airline in Vietnam to operate as a new-age airline offering flexibly-saving ticket fares and diversified services to meet customers’ demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers. Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. Vietjet was named “Best Ultra Low-Cost Airline 2018” and warded the highest ranking for safety with 7-stars in 2018 by the world’s only safety and product rating website AirlineRatings.com. The airline has been also listed in the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018.
Currently, Vietjet operates 60 A320, A321 aircraft with more than 385 flights daily, carrying more than 65 million passengers to date, with 103 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, South Korea, Taiwan, mainland China, Thailand, Myanmar, Malaysia and Cambodia.
The airline has plans to expand its flight network across the Asia-Pacific region and has signed contracts to buy new-generation aircraft from prestigious global plane manufacturers.
About CFM International
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 16,300 orders and commitments booked through September 2018. For more information concerning CFM, visit us on the Web at www.cfmaeroengines.com or follow us on Twitter @CFM_engines.
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