Vietjet inks $11.3 billion deal with Boeing

Monday, May 23, 2016 14:22

Vietjet President and CEO Nguyen Thi Phương Thao and Boeing Commercial Airplanes President and CEO Ray Conner at the signing ceremony in Ha Noi on May 23. — VNS Photo

HA NOI (Biz Hub) — Vietjet finalised an order with Boeing for 100 737 MAX 200 airplanes on May 23, valued at approximately US$11.3 billion according to current list prices.

This is the largest single purchase of commercial airplanes in Viet Nam's aviation industry.

The signing ceremony was witnessed by Viet Nam President Tran Dai Quang and US President Barack Obama.

"Incorporating the latest design and technology features, the highly efficient 737 MAX will provide Vietjet's growing network with market-leading economics and a superior passenger experience and will contribute significantly to its future success," Boeing Commercial Airplanes President and CEO Ray Conner said.

In her speech, Vietjet President and CEO Nguyen Thi Phuong Thao said the airline's investment in a new fleet is part of its strategy to focus on developing its international route network, including long-haul flights, in the near future.

With the deal, Vietjet will contribute not only to increasing bilateral trade turnover between Viet Nam and the United States, but also to the integration and development of the domestic aviation industry, Thao said.

The airplanes purchased under this deal will be delivered to Vietjet from 2019 to 2023. The latest aircraft addition will increase Vietjet's fleet to more than 200 aircraft by the end of 2023 with the most modern and advanced technology in the world, the carrier said in its latest statement.

An agreement was also inked between Vietjet and Pratt & Whitney Co, a subsidiary of United Technologies Corporation, on Monday. Following this deal which is worth $3.04 billion, the US firm will supply Vietjet with aircraft engines to power the airline's recent order of A320NEO and A321NEO aircraft and will also be responsible for the technical and maintenance services for this fleet. — VNS

Comments (0)