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Vietnam Airlines, the national flag carrier, has signed a deal with General Electric Aviation, a subsidiary of the GE Corporation, to buy 40 GEnx jet engines for its fleet of Boeing 787 Dreamliners.
The deal was cemented at the reception for the U.S.-ASEAN Business Council Board of Directors in Vietnam, reported state-run Vietnam News Agency on Wednesday.
In attendance were Vietnamese Minister of Transport Dinh La Thang, Vice Minister of Foreign Affairs Ha Minh Ngoc, the U.S. Ambassador to Vietnam David Shear and U.S.-ASEAN Business Council Chairman Evan Greenberg.
Accordingly, the engines are expected to be delivered by 2015.
The GEnx engine represents a giant leap forward in propulsion technology. Using new generation materials and design processes to reduce weight, improve performance and lower the need for maintenance, the engines consume 15 percent less fuel than the previous engine, making it both economically and environmentally efficient.
It is also the world's first commercial jet engine with a fan case and other parts made from carbon fiber composites, which are more durable and easier to maintain.
The contract's value has not been announced but Vietnam Airlines said the deal is the biggest for GE in the country, as the company is celebrating its 20th anniversary in Vietnam, said the report, adding that some local media sources predicted the contract is worth around 1.7 billion U.S. dollars.
The event marked an important step for Vietnam Airlines to power its new fleet of Dreamliners 787-9 with the impressive new jet engine, the report quoted CEO of Vietnam Airlines Pham Ngoc Minh, who added that the Dreamliner would help Vietnam Airlines to fly more efficiently, add frequency and to compete with other airlines with one of the more modern fleets in the region.
Vietnam Airlines operates 90 routes to 21 domestic and 28 international destinations with more than 300 daily flights.
Operating the young fleet of 82 aircraft primarily consisting Boeing 777s, Airbus A330 and A321, the airlines planned to further expand its fleet to 101 and 150 aircraft by 2015 and 2020, respectively.
The deal marks the second lucrative deal in Vietnam's airline industry in 2013. At the end of September, Vietjet Air signed a contract to buy 92 aircraft from world leading aircraft manufacturer Airbus, in addition to hiring eight Airbus 320s at a total value of nearly 8.6 billion U.S. dollars, according to the airlines official.
