An Airbus A321 aircraft belonging to national flag carrier Vietnam Airlines at Liên Khương airport in the Central Highlands province of Lâm Đồng. — VNS Photo Bồ Xuân Hiệp

National flag carrier Vietnam Airlines plans to purchase 50 Boeing 737 Max jets in a deal valued at around US$10 billion, local media reported.

A memorandum of understanding (MOU) for the purchase was signed on Monday during President Joe Biden’s visit to Việt Nam.

The move is part of the carrier’s efforts to upgrade its fleet and replace more than 40 older A321 planes with state-of-the-art planes.

Vietnam Airlines currently operates a fleet of more than 90 Airbus and Boeing aircraft.

While the carrier had been considering an order for 50 Airbus A321neo jets, it ultimately chose the Boeing 737 Max series instead.

The Boeing 737 Max series boasts a seating capacity of up to 230 passengers and has a flight range of over 3,000 kilometres, which is suitable for both domestic and regional routes.

While the details of the deal are yet to be revealed, the agreement is expected to bring benefits to both Vietnam Airlines and Boeing.

Vietnamese carriers, including Vietnam Airlines, have been struggling with challenges posed by the Covid-19 pandemic, including travel restrictions and reduced demand for air travel.

Though Boeing faced significant setbacks with the grounding of the 737 Max in 2019 following two tragic accidents, the aircraft was recertified in late 2020. — VNS