VietJet and Pratt&Whitney take off with $3 billion airplane engine deal

By May 22, 2016 | 11:44 pm PT

A VietJet A320 airplane is seen while parking before departure for Bangkok, at Noi Bai international airport in Hanoi September 25, 2013. Photoby REUTERS/KHAM

Vietnam-based budget airline VietJet Air signed a $3.04 billion contract with engine manufacturer Pratt & Whitney on Monday in Hanoi witnessed by U.S. President President Barack Obama and Vietnamese State President Tran Dai Quang.

The contract is to sell engines to power VietJet Air’s new Airbus aircraft A320NEO and A321NEO as well as supply technical and maintenance services for the fleet, said Vietnam's first privately owned carrier.

The engines will be installed on 63 A320 and A321 planes ordered by VietJet under a contract signed at the Singapore Airshow, according to a VietJet statement.

The engines are said to be 17 percent more efficient than their rivals.

Unlisted VietJet, with a fleet of 34 A320 and A321 planes, has plans to buy or lease a total of 107 aircraft over the next decade, receiving about 10-12 new jets a year.

The airline said it wants to expand its routes to cover all of Asia-Pacific.

Low-cost carrier VietJet Air had already signed a memorandum of understanding for the deal with Pratt & Whitney earlier this year in Singapore.‎

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