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Vietnam’s Bamboo Airways to sign $2 billion deal with GE for engines on Boeing jets By Reuters


© Reuters. FILEPHOTO: A crew member stands near an Airbus A321 airplane of Bamboo Airways prior to a flight at Noibai airport, Hanoi, Vietnam on January 16, 2019. REUTERS/Kham

HANOI (Reuters) – Vietnam’s Bamboo Airways will sign a deal valued at nearly $2 billion with General Electric (NYSE:) to purchase GEnx engines to power Boeing (NYSE:) 787-9 Dreamliner aircraft, the airline said on Tuesday.

Bamboo stated in a statement that the deal would be signed in America later Tuesday, in the presence Nguyen Xuan Phuc (Vietnam President).

Bamboo stated that the GEnx engine, which will arrive in 2022 and be fitted to the wide-body Dreamliner plane, will allow the airline to fly planned nonstop routes between Vietnam, USA, and Vietnam.

According to the company’s statement, “This agreement is an important milestone for us as we expand our transcontinental network and connect Vietnam with long-range and medium-range markets.”

According to the airline, it plans to open an American representative office and will sign agreements with San Francisco International Airport (SFO) and Los Angeles International Airport (LAX). This agreement opens the door for the first non-stop test flight between the two countries.

Bamboo stated that it plans to complete procedures for commercial non-stop flights to the United States in early 2019, subject to approvals from government.

Bamboo also stated it wants to grow its international flight network using the Boeing 787-9 Dreamliner plane.

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