Vietnam's Bamboo Airways will sign a deal valued at nearly $2 billion with General Electric (GE.N) to purchase GEnx engines to power Boeing 787-9 Dreamliner aircraft, the airline said on Tuesday.
The deal will be signed in the United States later on Tuesday in the presence of Vietnam President Nguyen Xuan Phuc, Bamboo said in a statement.
The GEnx engines, due to be delivered in 2022, will be used on the airline's wide-body Dreamliner fleet to operate planned non-stop routes between Vietnam and the United States, the company said.
"This new signing agreement will be an important milestone for the airline to expand its transcontinental flight network, connecting Vietnam with medium- and long-range markets," the statement said.
The airline said it will open a representative office in the United States and sign agreements with San Francisco International Airport and Los Angeles International Airport this week, paving the way for its first test of a non-stop flight between the countries on Thursday.
Bamboo said it aims to finalise procedures for non-stop commercial flights to the United Sates early next year, pending government approvals.
Bamboo said it is also seeking to expand its international flight network and open more routes to Australia, the United Kingdom and Germany, using its Boeing 787-9 Dreamliner aircraft.