VietJet Air agrees $800 mln engine deal with GE's CFM International

HANOI Mon Dec 16, 2013 6:36am EST

HANOI Dec 16 (Reuters) - Vietnam's budget carrier VietJet Air has agreed an $800 million deal to buy 40 engines from CFM International, a joint venture between General Electric and Snecma, a unit of France's Safran SA, the firms said on Monday.

The agreement was signed by representatives of GE and CFM in the Vietnamese capital Hanoi on Monday. CFM's Executive Vice President Gael Meheust said the $800 million would cover 28 engines for the Airbus A320 and 12 for the A321 models.

VietJet reached a $9 billion agreement on Sept. 25 with Airbus to buy 92 jets, mostly A320s, for delivery over the next eight years, in what was the latest big order by Southeast Asia's rapidly expanding airlines.

VietJet is aiming for a stock market listing in either Hong Kong or Singapore in 2015 to fund expansion beyond Vietnam.

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