Wednesday, January 30, 2002
Vietnam Airlines gets discount in Pratt deal
REUTERS
HANOI: National carrier Vietnam Airlines said on Tuesday it has secured a large discount in the $145 million contract it awarded US manufacturer Pratt & Whitney for nine engines to power the four Boeing 777s it ordered last month.
"We decided to favour Pratt & Whitney after careful consideration of all technical and commercial aspects," said a senior Vietnam Airlines official, who declined to be identified.
"People normally pay only 25 percent of the announced prices. All I could say is we have managed to bargain better than that."
He declined to give any absolute figure.
The official added that two PWFO84D engines would be installed in each of the four Boeing 777s and the airlines would have the ninth as spare.
Pratt & Whitney said on Monday it won the $145 million deal to supply engines to power Vietnam Airlines' four Boeing extended-ranged 777-200ERs. The planes will fly nonstop from Ho Chi Minh City to the Americas and Europe as well as Asia.
Industry officials have said Pratt & Whitney had submitted its bids in a tender along with Rolls-Royce and General Electric.
The Vietnam Airlines official said the airlines has been using Pratt & Whitney engines in two leased Boeing 767s and that their quality was fine.
Vietnam Airlines bought the Boeing 777 jets in a deal worth $680 million in the first transaction between companies of the two countries under a trade agreement in place since last month.
Vietnam Airlines expects to take delivery of the first Boeing 777 in August 2003 and one in September 2003. The other two are to be delivered in 2004 and 2005.
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