Vietnam’s Bamboo Airways to Ink $2 Billion GE Jet-Engine Deal
(Bloomberg) -- Vietnam’s Bamboo Airways JSC will outfit its new Boeing Co. 787-9 Dreamliners with engines made by a General Electric Co. venture in a deal valued at around $2 billion, according to Bamboo Airways Chief Executive Officer Dang Tat Thang.
The signing of the agreement will be witnessed by Vietnamese President Nguyen Xuan Phuc during his trip to New York City this week to attend the United Nations General Assembly, Thang said in an interview. The official signing is expected Tuesday in the U.S.
Bamboo Airways, which began flying in 2019 with the mission of connecting tourist regions in the Southeast Asian nation, is seeking to start commercial flights to the U.S. next year after the coronavirus pandemic waylaid earlier plans. The airline is also in discussions with CFM International Inc., the joint venture between General Electric and France’s Safran SA, for engines and engine-maintenance support for A321neo aircraft, Thang said.
As part of its move into the U.S., the airline is expected to sign cooperation agreements with San Francisco International Airport and Los Angeles International Airport and open a U.S. representative office, according to a company statement. Bamboo Airways also plans to expand its international routes to Australia, the U.K., and Germany.
The airline has 30 firm A321neo orders as well as another 20 options for those jets, plus its Boeing 787 order, according to the carrier.
It signed a deal with Boeing to purchase 10 wide-body 787-9 Dreamliners in February 2019, adding to a previous transaction struck in June the year prior for 20 787 Dreamliners. At the time, Bamboo Airways said it may also consider purchasing 25 narrow-body Boeing 737 Max planes.
©2021 Bloomberg L.P.