General Electric Co and Vietnam’s leisure airline BambooAirways are set to sign a $2 billion deal on Tuesday, Reuters reported citing the airline.
What Happened: As part of the deal, the Vietnamese airline would buy GEnx engines to power the Boeing Co’s 787-9 Dreamliner aircraft.
The GEnx engines would be delivered in 2022 and used on the airline's wide-body Dreamliner fleet, under the terms of the deal, Reuters reported. The airline plans to fly the fleet non-stop between Vietnam and the United States.
The deal will be signed in the United States later on Tuesday in the presence of Vietnam President Nguyễn Xuân Phúc, the report noted.
Why It Matters: The deal will help improve Vietnam's connectivity to mid and long-range markets, Bamboo Airways said in a statement.
The development follows Boeing’s decision to open its first office in Hanoi earlier this year, indicating the growing importance of the region to the planemaker.
As per the report, Bamboo Airways will open a representative office in the United States.
Price Action: Boeing shares closed 1.81% lower at $209.50 on Monday.
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