VietJet advised by Milbank in $3.58 Billion Aircraft Engine Deal with CFM
Milbank advises VietJet in $3.58 Billion Aircraft Engine Deal with CFM and $180 Million Aircraft Auxiliary Power Unit Deal with Honeywell
June 19, 2017
In yet another landmark deal for Vietnam’s first modern publicly traded aircraft company, VietJet, a team from Milbank, Tweed, Hadley & McCloy LLP advised the company in a US$3.58 billion transaction to purchase 215 aircraft engines from joint French-American maker CFM. This deal was signed in the presence of Vietnam’s Prime Minister Nguyen Xuan Phuc and U.S. Secretary of Commerce Wilbur L. Ross, Jr.
Milbank also advised VietJet on its agreement with Honeywell Aviation on an auxiliary power unit supply and technical maintenance to power the airline’s 98 airplanes. The agreement, worth $180 million , is aimed to help the carriers fleet be maintained under world leading standards.
The Milbank team was led by Singapore -based aviation and asset finance partner Paul Ng, who has advised VietJet on previous billion-dollar engine and aircraft deals with Airbus and Boeing, and also counseled the company in its historic initial public offering earlier this year, and associate Audrey Wang .
VietJet’s 12-year engine purchase agreement with CFM includes maintenance and service support. CFM is a 50-50 joint venture between GE and France’s Safran Aircraft Engines.
“The Asian aviation market is one of the most dynamic and important in the world,” said Mr. Ng, who heads Milbank’s aviation and asset finance practice in Asia . “VietJet is poised to become a leading low-cost carrier in East and Southeast Asia . Milbank is delighted to continue handling significant matters for VietJet as the company grows and expands.”