Vietjet and Boeing marks a new milestone after finalizing the delivery plan for 200 Boeing 737 Max planes. The additional agreement was signed and sealed during U.S. President Joe Biden's official visit to Vietnam recently.
Vietjet Chairwoman Nguyen Thi Phuong Thao and Boeing Global President Brendan Nelson have agreed to see through a delivery of up to 12 737 Max planes in 2024. The additional terms for 200 737 Max plane orders also include scheduled delivery to be made within the next five years, from 2024.
The contract for 200 Boeing 737 aircraft, worth more than US$25 billion (approx. MYR116.8 billion), has been lauded as one of the largest commercial deals and will contribute greatly to the trade balance between Vietnam and the United States.
The first batch of 737 Max planes will be delivered to Thai Vietjet, the affiliate company of Vietjet Group. Thai Vietjet is currently one of the leading airlines in Thailand, featuring Vietjet’s brand and images and favored by travelers in the region.
Vietjet’s initial contract to purchase 200 Boeing narrow-body aircrafts was interrupted due to the 737 Max’s issues, followed by the consequential impacts of the Covid-19 pandemic on Boeing's global supply chain. Many orders and aircraft delivery plans worldwide have been canceled or indefinitely postponed. While many airlines declined to fulfill their contracts, Vietjet and Boeing have persisted in finding common ground to meet and establish a mutual long-term strategy to carry out the contract.
Together, Boeing and Vietjet aim to join hands to make Vietnam an international center for aviation services, including training, education, and maintenance. Both parties will also work together to adopt new technology such as artificial intelligence (AI), aviation technology, green fuels, and reducing emissions in accordance with the aviation industry’s criteria. Both sides will additionally work on the support for the development of aviation infrastructure, airport operational capability enhancement, and flight management in Vietnam. Boeing will also look to promote Vietnam's participation in its global supply chain for aircraft production and aviation equipment.
Vietjet's order is expected to open up 200,000 jobs in the U.S labor market, with a value worth around US$35 billion, including aircraft orders and engine engineering services. The results achieved by both companies have not only stimulated growth in the aviation industry and the Vietnamese economy but will also attract numerous investors, domestically and internationally, including major corporations and investors from the United States, the world's largest economy.
During U.S. President Joe Biden's visit to Vietnam, Vietjet and Carlyle Aviation Partners also signed an aircraft finance agreement worth US$550 million (approx. MYR 2.57 billion) to finance the 737 Max aircraft’s pre-delivery payment (PDP).
Carlyle Aviation Partners is a US-based leading aviation finance and asset management company. Founded in 2002 with headquarters in Miami and Florida, Carlyle Aviation Partners is in the business of global aircraft finance and leasing, currently managing a fleet of 396 aircrafts in 59 countries.
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