Benzinga | Sep 21, 2021 02:50AM EDT

GE Expected To Ink $2B Deal With Vietnam's Bamboo Airways For Dreamliner Engines Today

General Electric Co (NYSE:GE) and Vietnam's leisure airline Bamboo Airways 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 (NYSE:BA) 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 Nguyn Xu?n Ph?c, the report noted.

See Also: Boeing Faces New 787 Dreamliner Delivery Delays

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.

For news coverage in French, Italian, or Spanish, check out Benzinga France, Benzinga Italia, or Benzinga Espa?a.

Photo: Courtesy of Momoneymoproblemz via Wikimedia