(Bloomberg) -- VietJet Aviation JSC indicated that it plans to establish a fleet of Airbus SE A330 jets for flights beyond Asia after signing a service deal for the Rolls-Royce Holdings Plc engines that power the twin-aisle model.
The Vietnamese airline will outfit upcoming wide-bodies with Rolls-Royce Trent 700 turbines, it said in a statement. A Rolls spokeswoman said the $400 million accord covers parts and support across 10 planes. The engines appear on the older, out-of-production version of the A330, suggesting the jets will be leased.
Discounter VietJet, which began flying in 2011 and operates 90 single-aisle planes on routes spanning India in the west to Japan in the east, said the foray into wide-bodies will enable it to expand “across continents.” Ch-aviation reported in April that the company planned to add A330s in the third quarter.
The deal with Rolls-Royce, which covers engine maintenance, was witnessed by Vietnamese Prime Minister Pham Minh Chinh during his trip to Scotland to attend the COP26 climate summit.
VietJet also signed a $20 million reinsurance agreement for its entire aircraft fleet with brokers Gallagher and Willis Towers Watson.
©2021 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
