Boeing and VietJet sign agreement for 100 737 MAX aircraft
Deal to double Vietnamese carrier's 737 MAX fleet to 200
Boeing and VietJet have signed a Memorandum of Understanding for an additional 100 737 MAX airplanes. The agreement, signed at the Farnborough International Airshow, includes 80 737 MAX 10s and 20 737 MAX 8s, is valued at more than $12.7 billion at current list prices.
Largest MAX 10 customer in Asia
The Vietnamese low-cost carrier will become the largest MAX 10 customer in Asia once the deal is completed. VietJet plans to leverage the added capacity of the MAX 10 to satisfy increasing demand on domestic routes, as well as on popular destinations throughout Asia.
Madam NguyễnThị Phương Thảo, President and CEO of VietJet said: "We are excited to introduce Boeing's newest 737 MAX 10 into our rapidly growing fleet. These new airplanes will fit perfectly into our growth strategy, providing the efficiency and range for VietJet to expand its route network and offer more international destinations for our customers and expand alliances across Asia Pacific, the fastest growing aviation market in the world."
As part of the agreement, Boeing would partner with VietJet to enhance technical and engineering expertise and pilot and technician training in Vietnam, helping to further develop the commercial aviation ecosystem in the growing country. Boeing will also support VietJet in improving management capabilities within the airline and country.
Expanding regional network
VietJet is Vietnam's first privately-owned airline and the first low-cost carrier in the country. The airline is bolstering its fleet to allow for expansion of its regional network. In 2016, VietJet finalised an order for 100 high-capacity 737 MAX 8 aircraft - the largest-ever single commercial airplane purchase in Vietnam aviation.
"We are honoured to deepen our strong partnership with VietJet as they become our newest 737 MAX 10 customer. Today's agreement for a repeat order from VietJet validates the best-in-class capabilities of the 737 MAX family of airplanes," said Kevin McAllister, president and CEO of Boeing Commercial Airplanes. "With this agreement, we take another major step in growing our partnership with VietJet, one that continues to contribute to the trade relationship between Vietnam and the United States. This agreement also grows Boeing's presence and partnerships across Asia Pacific, developing win-win partnerships in a region with tremendous development potential."
The deal will be reflected on Boeing's Orders and Deliveries website once it is finalised.