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VietJet to Buy 100 Boeing Aircraft for $11.3bn

On the sidelines of American president Barack Obama’s visit to Vietnam, major aircraft manufacturer Boeing has secured a major business deal with the country's leading budget carrier.

The contract, which will see Boeing deliver 100 of its new 737 Max 200 aircraft to civilian airline VietJet, was signed yesterday in Hanoi and is considered a major step in the airline’s goal to increase its fleet size to 200 by 2023, reports The Seattle Times.

“Boeing is proud to again play an integral role in advancing Vietnam’s aviation industry. We’re honored to be joined by President Quang and President Obama for this historic milestone and order of 100 737 MAX 200 airplanes,” Boeing Commercial Airplanes president and CEO Ray Conner said in a press release. “Incorporating the latest design and technology features, the highly efficient 737 MAX 200 will provide VietJet’s growing network with market-leading economics, a superior passenger experience and contribute significantly to their future success.”

At US$11.3 billion, the order is the biggest investment ever made into Vietnam’s aviation industry.

VietJet, the bikini-loving budget carrier has been making its mark in the regional aviation industry since 2011, offering over 50 domestic and international routes.

“They seem to be extremely ambitious,” Brendan Sobie, Singapore-based chief analyst at CAPA Center for Aviation told the International Business Times, adding: “They have established themselves domestically with a strong brand and high share of the market in a very quick time.”

The new plane order notwithstanding, VietJet is already making major moves in Vietnam. By the end of the year, the airline is expected to take the crown from Vietnam Airlines as the country’s biggest domestic carrier, according to the CAPA Center for Aviation.

VietJet is also poised to double its year-on-year revenue in 2016 to a cool US$488 million.

The company will, however, have to figure out where they'll park their next fleet as parking space at Vietnam's international airports is in short supply.

[Photo via Thanh Nien]

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