Pratt & Whitney, VietJet sign $3 billion engine deal (Source: Reuters)

HANOI - Engine manufacturer Pratt & Whitney has signed a $3.04 billion contract to sell engines to budget airline VietJet Air for Airbus (AIR.PA) aircraft, the airline said in a statement.

The engines will be installed on 63 A320 and A321 planes ordered by VietJet under the contract signed at the Singapore Airshow, Vietnam's first privately owned carrier said in the statement issued late on Wednesday.

Unlisted VietJet, with a fleet of 34 A320 and A321 planes, has plans to buy or lease a total of 107 aircraft over the next decade, receiving 10 to 12 new jets a year. The airline said it wants to expand routes to cover all of Asia-Pacific.

It has signed two contracts valued at a combined $1 billion in 2014-2015 with CFM International to buy 30 engines and for engine maintenance.

The airline has arranged credit for previous deals from French lender BNP Paribas SA (BNPP.PA) and also from other sources, including Japan's Mitsubishi UFJ Lease & Finance Company (8593.T).