- GE Venture CFM wins $4.9 billion order from Lion Group
- United's Pratt & Whitney gets $3 billion contract from VietJet
CFM International, a venture between General Electric Co. and Safran SA, and Pratt & Whitney split engine orders valued at $7.9 billion as Asian airlines selected power plants after a spree of jet orders over the past three years.
CFM secured a $4.9 billion order from Transportation Partners, the leasing arm of Lion Group, the engine maker said in a statement posted on its website Wednesday. Pratt & Whitney, a United Technologies Corp. company, secured a $3 billion contract from VietJet Aviation JSC, the airline said in an e-mailed statement.
Both orders are for powering Airbus Group SE A320neo family of aircraft.
The engine orders follow $4.2 billion of contracts signed at the Singapore Airshow this week amid concern that a three-year, multi-billion-dollar spending spree by Asian carriers is beginning to lose steam. Airbus secured a $1.9 billion contract from Philippine Airlines Inc. while Chicago-based Boeing announced a $1.3 billion agreement with China’s Okay Air Wednesday.
Mitsubishi Aircraft Corp. and ATR also secured contracts at the weeklong Singapore airshow, which started Tuesday.
The two days of orders at the expo come amid speculation the heyday of giant orders from India and Southeast Asian nations is ending, and that airlines in the region may have to delay delivery of planes as economic growth slows. On Sunday, International Air Transport Association President Tony Tyler said Southeast Asian airlines may defer plane orders as they battle overcapacity and intense competition among half a dozen low-fare carriers.
The Lion Group owns Lion Air, a budget carrier that’s now the biggest airline in Indonesia. In March 2013, PT Lion Mentari Airlines placed a $24 billion order for 234 planes from Airbus. That followed a $22 billion order the carrier placed in 2012 with Boeing.
VietJet is also a low-cost airline.