Vietjet inks $18b deals with US partners

Wednesday, Feb 27, 2019 15:23

President & CEO Vietjet Nguyen Thi Phuong Thao and President & CEO Boeing Commercial Airplanes Kevin McAllister pose for a photo after signing the deal with the witness of the Viet Nam’s President Nguyen Phu Trong (third from left). — VNS photo

New-age carrier Vietjet signed an agreement to purchase 100 new 737 MAX airplanes worth $12.7 billion from Boeing.

The signing ceremonies were witnessed by Viet Nam’s Party General Secretary, President Nguyen Phu Trong and US President Donald Trump  on the sideline of the USA-DPRK Summit in Ha Noi on Wednesday.

Boeing Commercial Airplanes President & CEO Kevin McAllister said he believed that the MAX would help Vietjet grow more efficiently and provide greater travel experiences for passengers.

“Vietjet and the country’s burgeoning aviation sector are clearly enablers, helping to stimulate travel within Viet Nam and connecting Viet Nam with the rest of Asia. We are proud to support this economic development, which in turn supports engineering and manufacturing jobs in the US,” he said.

For her part, Vietjet President and CEO Nguyen Thi Phuong Thao described the deal as an important move for the airline to meet its international flight network expansion plan with a higher capacity, thus offering passengers more exciting experiences by being able to fly to more new international destinations.

In addition to airplane purchases, Boeing will partner with Vietjet to enhance technical and engineering expertise, train pilots and technicians, and improve management capabilities at the airline and in Viet Nam.

In 2016, Vietjet also signed a 100 B737 MAX order, setting the mark for the largest commercial jet purchase in the country’s aviation sector at the time, and making the airline currently the largest customer of the B737 MAX model in Asia.

Besides Boeing, Vietjet and General Electric on Wednesday finalised an engine order and agreement for a long-term CFM International LEAP-1B engine support package worth $5.3 billion, according to the manufacturer’s list price.

The agreement includes spare engines and support packages to facilitate the airline’s already-ordered new aircraft.

General Electric has provided engines for Vietjet’s aircraft since the airline commenced operations in late 2011 with the CFM56-powered aircraft.— VNS

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