Vietnam's VietJet Air today concluded a 12-year Rate Per Flight Hour (RPFH) maintenance agreement with CFM International to support the LEAP-1B engines that will power the airlines new fleet of 100 Boeing 737 MAX aircraft scheduled for delivery between 2019 and 2023. The agreement is valued at $3 billion U.S. at list price and includes a total of 215 engines.
The signature ceremony was witnessed by Vietnam's Prime Minister Nguyen Xuan Phuc, currently visiting the United States, and U.S. Secretary of Commerce Wilbur L. Ross, Jr.
Rate per Flight Hour agreements are part of CFM's portfolio of flexible aftermarket support offerings. Throughout the term of the agreement, CFM guarantees maintenance costs for the all VietJet Air's LEAP-1B engines on a dollar per engine flight hour basis.
Based in Ho Chi Minh City, Vietjet has been a CFM customer since it commenced operations in late 2011 with CFM56-powered aircraft and currently operates a fleet of 40 aircraft.
"We know that CFM will be a great partner as we begin to introduce the LEAP-1B into our fleet," said Madame Thao Nguyen Thi Phuong Thao, CEO of VietJet Air. "This RPFH agreement is an important part of that process. Knowing from the beginning that the maintenance costs of our new fleet will be predictable and what those costs will be put us in a much better position to plan our operations and implement our growth strategy."
"We appreciate the high level of confidence this agreement shows in CFM and in our ability to support VietJet over the long term," said Gaël Méheust, president and CEO of CFM International. "It has been an honor to be a part of the very dynamic and exciting team for the last six years. It is a privilege to know that this very special relationship will continue for many more years to come."