February 18, 2016 / 3:31 AM / in 2 years

Pratt & Whitney, VietJet sign $3 billion engine deal

HANOI (Reuters) - Engine manufacturer Pratt & Whitney has signed a $3.04 billion contract to sell engines to budget airline VietJet Air for Airbus (AIR.PA) aircraft, the airline said in a statement.

The logo of U.S. manufacturer Pratt & Whitney is seen on an engine of Swiss airline's new Bombardier CS100 passenger jet at Zurich airport near the town of Kloten June 18, 2015. REUTERS/Arnd Wiegmann

The engines will be installed on 63 A320 and A321 planes ordered by VietJet under the contract signed at the Singapore Airshow, Vietnam’s first privately owned carrier said in the statement issued late on Wednesday.

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 10 to 12 new jets a year. The airline said it wants to expand routes to cover all of Asia-Pacific.

It has signed two contracts valued at a combined $1 billion in 2014-2015 with CFM International to buy 30 engines and for engine maintenance.

The airline has arranged credit for previous deals from French lender BNP Paribas SA (BNPP.PA) and also from other sources, including Japan’s Mitsubishi UFJ Lease & Finance Company (8593.T).

Reporting by Ho Binh Minh; Editing by Muralikumar Anantharaman

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