VietJet Air Finalizes $5.3 Billion CFM LEAP-1B Engine Order and Long-term Support Agreement

March 5, 2019

VietJet Air Finalizes $5.3 Billion CFM LEAP-1B Engine Order and Long-term Support Agreement

  • Supports entire fleet of 415 LEAP-1B engines
  • First LEAP-powered MAX delivery scheduled for later this year

WEST CHESTER, Ohio — 5 March 2019— Vietnam’s VietJet Air and CFM International have finalized an agreement for the airline to purchase 200 LEAP-1B engines to power 100 additional Boeing 737 MAX airplanes announced earlier today, along with an extension of airline’s current Rate Per Flight Hour (RPFH) agreement to include the new engines.  The agreement, which includes 15 spare engines, is valued at $5.3 billion U.S.

The signature ceremony was witnessed by U.S. President Donald Trump and Vietnam party chief and President Nguyen Phu Trong in Hanoi, Vietnam, on February 27.

RPFH agreements are part of CFM’s portfolio of flexible aftermarket support offerings.  Throughout the term of the 12-year agreement, CFM guarantees maintenance costs for the 415 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 the CFM56 engine and currently operates a fleet of 65 CFM-powered aircraft.

“We have been very happy with our CFM56 fleet and look forward to introducing the new LEAP-1B engine later this year,” said Madame Thao Nguyen Thi Phuong Thao, CEO of VietJet Air.  “This RPFH agreement will be an important element in keeping our operating costs predictable, which puts us in a much better position to plan our operations and implement our growth strategy.”

“The LEAP-1B has been doing extremely well in commercial service in the last nearly two years and we believe the engine will prove to be an important asset for VietJet Air over the long term,” said Gaël Méheust, president and CEO of CFM International.   “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.”

About VietJet Air

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 65 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.

The airline was named as one of the Top 500 Brands in Asia 2016 and “The Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, “The most favorite carrier in Vietnam” by the Economic Times.  Like Vietjet on Facebook, www.facebook.com/vietjetvietnam, follow us on Twitter, @vietjetvietnam,

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 17,275 orders and commitments booked to date.  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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