VIETNAM AIRLINES TO INCREASE V2500 FLEET IN $700M DEAL

Vietnam Airlines has once again selected the IAE International Aero Engines V2500 to power a new fleet of 36 Airbus A321 aircraft it has on order. With deliveries scheduled to begin in April 2011, this deal, worth over $700 million, will see Vietnam increase its fleet of IAE-powered aircraft to 58 over the next 3 years.

The airline has been operating the V2500 since 2003 and currently has 22 IAE-powered aircraft in service. The aircraft are used on major domestic routes between Hanoi and Ho Chi Minh City and on regional routes serving Hong Kong, Taipei, Bangkok and Singapore.

“We can only maintain our position as a major airline in Asia with a consistently reliable and competitive product that satisfies our customers’ needs,” said President and CEO Pham Ngoc Minh of Vietnam Airlines. “The V2500 has played a fundamental part in helping us achieve this thanks to its excellent in-service performance and reliability record, coupled with affordable cost of ownership. We view the engine as an integral part of our fleet.”

IAE President and CEO, Ian Aitken, added: “Vietnam Airlines successfully positioned itself as a modern brand through the acquisition of new aircraft and world-class technology. The airline’s repeat order for the V2500 fits with this vision and that its performance meets the high standards set by Vietnam airlines.”

Vietnam Airlines is purchasing 26 of the aircraft that make up this order while the remaining 10 will be leased from Vietnam Aircraft Leasing Company.

The V2500 SelectOne™ build standard delivers an additional one percent fuel burn advantage, along with a corresponding reduction in CO2 emissions. It improves time-on-wing by up to 20 percent, and will be compliant with the most stringent CAEP/6 NOx standards. It entered service on schedule in October 2008.

The 22,000-33,000lb of thrust V2500 is available in seven different thrust settings to power the Airbus A319, A320 and A321 family of aircraft as well as the A319 Corporate Jet. More than 5,500 V2500 engines are in service or on firm order with more than 190 customers around the world.

IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), Japanese Aero Engines Corporation and MTU Aero Engines.