VietJet, based in Vietnam, announced on Monday it had agreed to order 100 737 MAX 200 Boeing jets that were worth $11.2 billion at Boeing’s list prices.
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Tran Dai Quang, President of the Socialist Republic of Vietnam, and US President Barack Obama today witnessed the historic agreement, which has been valued at approximately US$11.3 billion. Delivery of the planes will run for four years beginning in 2019 and will help the carrier expand its fleet to 200 by the end of 2023, the company said in a statement.
Vietjet President & CEO Nguyen Thi Phuong Thao and Boeing President & CEO Ray Conner sign aircraft order documents.
“Through this Agreement, Vietjet will contribute increasing bilateral trade turnover between Vietnam and the United States, as well as contributes in the integration and development of the aviation industry in Vietnam”, Thao said, as quoted by the airline. As well as the 100 B737s, the airline has outstanding orders for more than 100 extra Airbus jets, including the A320neo – the main rival to Boeing’s B737 MAX series.
The order will expand Vietjet’s fleet to 200.
The Boeing aircraft “will accommodate our strategy of growing VietJet’s coming global route network, including long-haul flights”, CEO Nguyen Thi Phuong Thao said in a statement.
Southeast Asia’s airline market has grown rapidly over the last decade, fuelled by the emergence of budget airlines that offer greater travel options for the middle class. According to the Center for Aviation, VietJet has already captured 40% of the country’s domestic airline market and saw its passenger traffic increase 70% in 2015.
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VietJet now operates 28 Airbus A320 and A321 airliners with an average age of just 3.6 years. It operates 50 routes in Vietnam and across the Asia-Pacific region to worldwide destinations such as Thailand, Singapore, South Korea, Taiwan, China, Myanmar and Malaysia. Boeing provides products and support services to customers in more than 150 countries and is one of the largest USA exporters in terms of sales.
