Vietjet signs US$300 million deal with CFM International

SINGAPORE – Vietjet Aviation Company (“Vietjet”) has signed a US$300 million contract for engine maintenance with CFM International (“CFM”). Officiating this in a ceremony in France, the new contract will see CFM provide technical assistance for CFM56-5B engines currently installed in Vietjet’s 21 Airbus A320 aircraft.

 

Vietjet has been a customer with CFM since the airline first started its operations in 2011. Earlier this year, the airline also signed a US$800 million deal to buy 21 CFM56-5B engines to power an additional 14 Airbus A320 aircraft and 7 A321 aircraft. Under the terms of the new agreement, CFM will guarantee maintenance costs for a total of 45 CFM56-5B engines for the next 12 years.

 

Mr Luu Duc Khanh, Managing Director of Vietjet said, “We look forward to working with CFM to help keep our maintenance costs in check. They have proven to be a real partner in our operations and will continue to be an asset to support the continued growth of our airline.”

 

Gael Meheust, Vice President of Sales and Marketing of CFM’s parent company, Snecma (Safran) said, “We are very happy to provide our expertise for Vietjet and help them keep their operating costs low. The airline has accomplished a great deal in such a short amount of time and we are thrilled to be such an integral part of their team.”

 

All of Vietjet’s new engines will be part of the CFM56-5B Performance Improvement Package configuration. This package will provide a 0.5% improvement in fuel burn and core hardware changes such as a new high-pressure turbine blade, manufacturing changes to the fan and compressor blades and vanes to improve performance retention. The engines aim to maintain the noise signature as the current production engine which meets the current International Civil Aviation Organisation Committee of Aviation Environmental Protection standard requirements.

 

Since Vietjet started its operations three years ago, the airline has doubled its commercial fleet, resulting in the transportation of approximately six million passengers thus far. Vietjet currently operates 24 domestic and international routes. It offers daily flights from Singapore to Ho Chi Minh City where travellers can easily connect to other cities within Vietnam via the airline’s extensive network of domestic flights. International routes include Bangkok, Siem Reap and Seoul.