Vietjet selects RTX's Pratt & Whitney to power 19 additional A321neo aircraft

Rhea-AI Summary

Pratt & Whitney, an RTX business, secures a follow-on A321neo order from Vietjet for 19 GTF-powered aircraft, solidifying their partnership. The deal includes engine maintenance services through an EngineWise® agreement, showcasing Vietjet's confidence in Pratt & Whitney's expertise and technology.

Aerospace Industry Analyst

The announcement of Vietjet's exercise of options for an additional 19 GTF-powered A321neo aircraft represents a significant order for Pratt & Whitney, potentially affecting RTX's stock performance. The GTF, or Geared Turbofan, engines are a line of high-efficiency jet engines that have been gaining market share due to their reduced fuel consumption and lower emissions compared to traditional engines. This deal not only indicates Pratt & Whitney's competitive position in the market but also reflects the ongoing trend in the aviation industry towards more environmentally friendly and cost-efficient technologies.

For stakeholders, the implications are multifaceted. On the one hand, this order could increase Pratt & Whitney's revenue backlog, providing a more stable financial outlook. On the other hand, fulfilling this order will require successful scaling of production and maintenance capabilities, which could pose challenges. The long-term benefits for Vietjet include potential operational cost savings and an enhanced eco-friendly brand image, which could attract environmentally conscious customers.

Financial Analyst

From a financial perspective, the exercise of options for additional aircraft is a bullish signal for Pratt & Whitney's parent company, RTX. It suggests confidence in the GTF engine's market performance and reliability. The EngineWise® Comprehensive service agreement accompanying the engine order is a strategic move to secure long-term service revenue, which typically offers higher margins than the initial sale of engines. This could improve RTX's future earnings visibility and margins, making it an attractive point for investors.

However, investors should also consider the capital expenditure associated with expanding service capabilities and potential risks in the supply chain that could affect delivery timelines and cost structures. The impact on the stock market will depend on how well Pratt & Whitney manages these operational aspects and whether they can meet or exceed market expectations for profitability and efficiency.

Market Research Analyst

Examining the broader market implications, the selection of GTF engines by Vietjet may influence other airlines' procurement decisions, potentially leading to increased market share for Pratt & Whitney. The aviation industry is highly competitive and airlines are continuously seeking ways to reduce operational costs. The GTF engine's promise of lower fuel consumption and maintenance costs positions Pratt & Whitney favorably against competitors.

It is also worth noting the strategic importance of the signing ceremony's location at the Singapore Airshow, a major event in the aviation industry that garners significant attention. Such public commitments can enhance brand reputation and serve as a marketing tool to attract new customers. The ripple effects of this deal could be seen in subsequent orders from other airlines, influenced by Vietjet's decision and the visibility gained at the airshow.

GTF engines selected for follow-on A321neo order

SINGAPORE, Feb. 21, 2024 /PRNewswire/ -- (SINGAPORE AIRSHOW) - Pratt & Whitney, an RTX (NYSE: RTX) business, and new-age airline Vietjet announced today that the airline has exercised options for an additional 19 firm GTF-powered A321neo aircraft. Pratt & Whitney will also provide Vietjet with engine maintenance through an EngineWise® Comprehensive service agreement. A signing ceremony took place at the Singapore Airshow with representatives from both companies.

Vietjet is a rapidly growing airline with an expansive fleet and flight network. Vietjet Chief Executive Officer Dinh Viet Phuong, said. "We continue to select and trust our partner, Pratt & Whitney, as they have long been a world leader in the aviation industry with a solid technology foundation. We are confident about the GTF-powered aircraft that provide fuel efficiency and reduce the environmental impact. Vietjet continues to have trust and faith in the ongoing support provided by Pratt & Whitney."

Vietjet received its first A321neo aircraft in 2018 and currently operates a fleet of 24 GTF-powered A321neo aircraft. Combined with the airline's previous orders, Vietjet has committed to up to 87 aircraft of this type.

"Nearly a decade ago, Vietjet first selected the GTF engine, and we value the airline's continued trust in Pratt & Whitney to power its expanding fleet," said Rick Deurloo, president of Commercial Engines at Pratt & Whitney. "GTF engines provide Vietjet with some of the lowest fuel consumption and emissions in the region."

Vietjet is actively expanding its flight network to serve passengers throughout Vietnam, Australia, India, China, Japan, South Korea, Indonesia, Thailand, and many more intercontinental destinations. The airline aims to provide the best flying experience at the most competitive cost for passengers through strategic partnerships with leading aviation and technology partners in the industry worldwide.

About Pratt & Whitney 
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines and auxiliary power units. To learn more visit www.prattwhitney.com.

About RTX
RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $68.9 billion, is headquartered in Arlington, Virginia.

About Vietjet
The new-age carrier Vietjet has not only revolutionized the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations, and performance, applying the latest technology to all activities and leading the trend, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers' demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam's largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world's only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others.

Further information at www.vietjetair.com

Media contact:
Vietjet
Kieu Duong (Amy)
E: kieuduong@vietjetair.com
Tel: +84 932 775 066

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/vietjet-selects-rtxs-pratt--whitney-to-power-19-additional-a321neo-aircraft-302067612.html

SOURCE RTX

What type of aircraft did Vietjet order from Pratt & Whitney, an RTX business?

Vietjet ordered 19 firm GTF-powered A321neo aircraft from Pratt & Whitney, an RTX business.

What additional service will Pratt & Whitney provide to Vietjet?

Pratt & Whitney will provide Vietjet with engine maintenance through an EngineWise® Comprehensive service agreement.

Where did the signing ceremony for the follow-on order take place?

The signing ceremony took place at the Singapore Airshow with representatives from both Pratt & Whitney and Vietjet.

Why did Vietjet choose Pratt & Whitney as their partner for the aircraft order?

Vietjet selected Pratt & Whitney as their partner due to their long-standing reputation as a world leader in the aviation industry with a strong technology foundation.

Who is the Chief Executive Officer of Vietjet?

Dinh Viet Phuong is the Chief Executive Officer of Vietjet.