KUALA LUMPUR, September 19 – A significant aviation milestone was achieved as Vietjet and Boeing have formally solidified their delivery plan for 200 Boeing 737 Max planes. The announcement came during U.S. President Joe Biden’s recent official visit to Vietnam. Vietjet Chairwoman Nguyen Thi Phuong Thao and Boeing Global President Brendan Nelson have reached an agreement to deliver up to 12 Boeing 737 Max planes in 2024. The comprehensive agreement includes the scheduled delivery of these planes over the next five years, starting in 2024.
Valued at more than US$25 billion (approximately MYR 116.8 billion), the contract for 200 Boeing 737 aircraft stands as one of the most significant commercial deals in the aviation industry. It is poised to make a substantial contribution to the trade balance between Vietnam and the United States. The first batch of 737 Max planes will find their way to Thai Vietjet, an affiliate of the Vietjet Group. Thai Vietjet has established itself as one of Thailand’s prominent airlines, adorned with Vietjet’s brand and images and highly regarded by travelers across the region.
Vietjet’s original contract for the purchase of 200 Boeing narrow-body aircraft was met with interruptions due to the issues surrounding the 737 Max, compounded by the global supply chain disruptions caused by the Covid-19 pandemic. Many aircraft orders and delivery plans worldwide were either canceled or indefinitely postponed. However, in contrast to many airlines, Vietjet and Boeing remained steadfast in their commitment to finding common ground, ultimately forging a mutual long-term strategy to fulfill the contract. In collaboration, Boeing and Vietjet aspire to transform Vietnam into a global hub for aviation services encompassing training, education, and maintenance.
Additionally, both parties are dedicated to embracing new technologies such as artificial intelligence (AI), aviation technology advancements, sustainable aviation fuels, and emissions reduction in line with industry standards. They will also work to support the development of aviation infrastructure, enhance airport operational capabilities, and bolster flight management within Vietnam. Boeing is actively exploring opportunities to involve Vietnam in its worldwide supply chain for aircraft production and aviation equipment.
The Vietjet order is anticipated to create approximately 200,000 jobs within the U.S. labor market, with an estimated total value of around US$35 billion, encompassing aircraft orders and engine engineering services. The accomplishments of Vietjet and Boeing extend beyond stimulating growth within the aviation sector and the Vietnamese economy. They are expected to attract domestic and international investors, 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 signed an aircraft finance agreement valued at US$550 million (approximately MYR 2.57 billion) to finance the pre-delivery payment (PDP) for the 737 Max aircraft. Carlyle Aviation Partners, a leading U.S.-based aviation finance and asset management company established in 2002, operates globally in aircraft finance and leasing. The company manages a fleet of 396 aircraft in 59 countries, with its headquarters located in Miami, Florida.