VALC and IAE Sign Agreement for 20 V2500 Engines in $184M Deal

HANOI, VIETNAM–(Marketwire – December 6, 2010) – International Aero Engines announced today that it has signed an agreement with Vietnam Aircraft Leasing Company (VALC) to provide 20 V2533-A5 engines to power 10 Airbus A321-200 aircraft, on order. 

The contract, valued at more than US $184 million with deliveries being made in 2012 and 2013, was previously announced during the Farnborough Airshow in July 2010. The signing ceremony took place at the Hilton Hanoi Opera Hotel, Hanoi, Vietnam today. 

The aircraft will be operated by Vietnam Airlines, who have been a customer of IAE, and used on major domestic routes between Hanoi and Ho Chi Minh City, and on regional routes serving Hong Kong, Taipei, Bangkok and Singapore.

IAE Executive Vice President Customer Business Jim Guiliano said: “We are proud to be the first major engine manufacturer selected by VALC; the very first aircraft leasing company in Vietnam. I believe these aircraft will be the beginning of strong, steady growth for the VALC fleet.”

IAE will deliver the V2500 SelectOne™ build standard which provides 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 demonstrates compliance with all applicable CAEP emissions standards.

The V2500 is available in seven different thrust settings, from 22,000 to 33,000lb, to power the Airbus A319, A320 and A321 family of aircraft as well as the Airbus Corporate Jetliner. IAE’s in-service fleet has doubled in the last five years and is the third largest engine program currently in production. Nearly 6,500 V2500 engines are in service or on firm order, and the worldwide fleet has accumulated over 85 million flying hours.

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