Vietjet, Boeing sign deal for 200 aircraft as part of airline’s global strategy

Budget carrier Vietjet and Boeing successfully reached an agreement to reaffirm a previously announced order for 200 737 MAX aircraft during the 2022 Farnborough International AirShow in the United Kingdom.

Accordingly, both sides will execute a flexible aircraft delivery schedule to support Vietjet’s growth plans as traffic across the world continues to recover. The first 50 aircraft will be delivered to Thai Vietjet, an affiliate company of Vietjet in Thailand. Thai Vietjet is currently one of the leading domestic airlines in Thailand and favoured among Thai people.

As part of the agreement, Boeing is committed to supporting Vietjet with technical services, training, technology transfer and research & development (R&D) to ensure lasting and sustainable growth with the highest levels of efficiency, reliability and affordability.

“We are honoured to continue our partnership with Vietjet to drive affordable passenger service in one of the world's fastest-growing aviation regions,” John Bruns, Vice President, India & Southeast Asia Sales & Marketing, Boeing Commercial Airplanes, was quoted as saying in a Vietjet press release.

"The 737 Max, with its efficiency, flexibility and capability, will support Vietjet’s goal to grow its route network in Asia and beyond,” he added.

Vietjet and Boeing earlier signed order deals totalling 200 B737 Max with maintenance and technical support packages. The first order for 100 B737 Max in 2016 was a remarkable deal for one of the most modern aircraft models at the time. In 2019, both parties increased the total order to 200 aircraft, making the order a record for Boeing. 

“Today’s agreement is a milestone in the long-standing and trustful relation between Vietjet and Boeing as well as Vietnam-US trade relations,” Vietjet Managing Director Dinh Viet Phuong, said.

The agreement had been interrupted because of the 737 Max’s suspension and the impacts of the COVID-19 pandemic on Boeing's global supply chain. Vietjet’s operations, therefore, have been affected. Despite the challenges, the carrier has weathered through the storm, maintaining excellent operational and financial capability.

Vietjet's order is expected to bring 200,000 jobs to the US labor market and totally create a value worth around US$35 billion, including aircraft orders and engineering services. The order is also expected to attract investment into Vietnam’s aviation industry, creating hundreds of thousands of jobs.