The signing ceremony between VietJet and CFM International on Monday. — VNS Photo

PARIS (Biz Hub) – VietJet, Viet Nam's fastest growing carrier, and CFM International on Monday signed a 12-year rate-per-flight-hour agreement to support the airline's 21 Airbus 320ceo aircraft powered by CFM56-5B engines.

Under the terms of the US$300-million agreement, CFM will guarantee the maintenance costs for 45 CFM56-5B engines on a dollar per engine flight-hour basis and provide some spare engines for free.

"With this agreement, we are looking to CFM to help us keep our maintenance costs in check," said VietJet Managing Director Luu Duc Khanh.

"We are very happy to bring all our expertise to VietJet and help them keep their operating costs low," said Gael Meheust, Vice President of Sales and Marketing for CFM's parent company Snecma (Safran).

VietJet has been a CFM customer ever since it commenced operations in late 2011, with 18 leased CFM56-5B-powered A320 aircraft. Earlier this year, the airline placed an $800-million order to purchase CFM56-5B engines to power 14 additional Airbus A320ceo (current engine option) and seven A321ceo aircraft. As a result, the airline now has 39 CFM56-5B engines. VietJet will receive its first purchased aircraft today. — VNS