Tag: Prime Minister

VietJet Signs $6.5 bln Deal For 50 Airbus Jets

November 2, 2018 / WIL BALDWIN

HANOI, Nov 2 (Reuters) – VietJet Aviation signed a $6.5 billion agreement on Friday to buy 50 Airbus A321neo jets, the Vietnamese budget carrier said.

The agreement, signed during a visit to Hanoi by French Prime Minister Edouard Philippe, is part of aggressive investment in the Vietnamese airline’s fleet, which has provided lucrative business for both European aerospace group Airbus and its U.S. rival Boeing.

VietJet said the order is in line with its growth strategies and will enhance the airline’s operational efficiency and capacity, especially on international routes.

In addition to the aircraft, Airbus will deploy pilot and technician training programmes and fight management and flight safety management for VietJet.

In a separate statement, VietJet said it had also signed a memorandum of understanding with CFM International on a $5.3 billion deal for long-term jet engine maintenance.

VietJet, Vietnam’s biggest private airline, currently operates 60 Airbus jets with more than 385 flights daily within Vietnam and to countries such as Japan, Hong Kong, South Korea, Taiwan, Singapore, China, Thailand, Myanmar and Malaysia.

CEO Nguyen Thi Phuong Thao told Reuters this week that VietJet plans to maintain an average fleet age of only three years to minimise fuel and maintenance costs.

It placed provisional orders for the A321neo jets and 100 Boeing 737 MAX jets at the Farnborough air show and has been in negotiations to complete the deals, with deliveries expected between 2020 and 2025.

(Reporting by Khanh Vu Editing by David Goodman)

Image from Airbus

Israel & Boeing Sign Reciprocal Spending Deal

October 30, 2018 / WIL BALDWIN

JERUSALEM (Reuters) – Boeing (BA.N) has agreed to spend billions of dollars in Israel over the coming decade if it wins major defense contracts, Israel’s Economy Ministry said on Tuesday.

The “reciprocal procurement” agreement calls for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.

This could ease concerns in Israel over new requirements in a U.S. aid package that divert funds away from local industries.

Boeing is competing in Israel for a number of key Defence Ministry contracts, including the purchase of additional F-15 aircraft, fueling planes and a squadron of transport helicopters, the ministry said.

With Israel expecting to make about $10 billion of military purchases from Boeing over the next decade, the agreement with the U.S. aerospace company means $3.5 billion in new business in Israel, the ministry said in a statement.

“A reciprocal procurement agreement of this magnitude is a significant achievement that will lead to the growth of many companies in the economy, increase their activity and also their success in international markets,” said Economy Minister Eli Cohen.

Under a defense aid deal signed in 2016 by Israeli Prime Minister Benjamin Netanyahu and then U.S. President Barack Obama, the United States agreed to provide Israel with $38 billion in military assistance over 10 years.

However, one component of the deal was to phase out a special arrangement that had allowed Israel to use 26.3 percent of the U.S. aid on its own defense industry instead of on American-made weapons. All the aid will now have to be spent on U.S. equipment by 2026.

(Reporting by Ari Rabinovitch; Editing by Adrian Croft)

Lockheed Martin To Build Wings For F-16 Jet In India

September 4, 2018 / WIL BALDWIN

By Neha Dasgupta

NEW DELHI (Reuters) – Lockheed Martin will build wings for its F-16 combat plane in India with its local partner, Tata Advanced Systems Limited, an executive at the U.S. company said on Tuesday.

Lockheed is bidding for a contract – estimated at more than $15 billion – to supply the Indian air force with 114 combat planes, which must be all manufactured locally under Prime Minister Narendra Modi’s flagship Make in India programme.

However, Vivek Lall, vice president of strategy and business development at Lockheed, said the proposed Indian production of the F-16 wings would not be contingent upon the company winning the order for the planes.

“Producing F-16 wings in India will strengthen Lockheed Martin’s strategic partnership with Tata and support Make in India,” the company said in a statement.

Modi has been pushing for local manufacturing that will provide jobs and also end the military’s dependence on imports.

Lockheed’s announcement came just days ahead of top level talks between the United States and India aimed at expanding defence ties.

U.S. Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will meet with Indian Foreign Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman.

Boeing has pitched its F/A-18 Super Hornet for the Indian contract as well as Sweden’s Saab with its Gripen fighter. France’s Dassault Systemes SE’s Rafale, the Eurofighter Typhoon and Russian aircraft are also in the fray.

Lall said Lockheed had offered to make India its sole F-16 production facility that would supply the Indian military but also other countries. “If India buys the F-16 then it becomes the centre of manufacturing for the global market,” he said.

Lall said the company planned to begin production of the F-16 wings in the southern Indian city of Hyderabad from 2020. He said these were being produced at a facility in Israel and would not impact any jobs in the United States.

The Israeli centre will continue to be involved in other production, he said. “All F-16 wings globally are to be built in the Hyderabad facility,” he said.

(Reporting by Neha Dasgupta; Writing by Sanjeev Miglani; Editing by Susan Fenton and Jane Merriman)

VietJet Signs $6.5 bln Deal For 50 Airbus Jets

Israel & Boeing Sign Reciprocal Spending Deal

Lockheed Martin To Build Wings For F-16 Jet In India

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