Boeing on Wednesday struck a brand new deal to purchase 100 passenger planes with Vietnamese low-cost airline VietJet Aviation, deepening the battle for market share with rival Airbus in considered one of Southeast Asia’s hottest markets.
Boeing and VietJet signed an interim order for 100 Boeing 737 MAX planes price nearly $13 billion at list prices on the Farnborough Air Show in southern England.
Of these, 80 are the recently launched 737 MAX 10 – the most important version of Boeing’s best-selling 737 series – and 20 are the benchmark 737 MAX 8 model.
#Breaking @VietjetairCom signed a memorandum of understanding for the one hundredth anniversary of @BoeingAirplanes #737MAXincluding variants -8 and -10. #FIA18 pic.twitter.com/aGfcB03d9e
— Roberto Leiro (@rleiro) July 18, 2018
“Growth in Southeast Asia is extremely strong,” said Kevin McAllister, CEO of Boeing Commercial Airplanes Reuters. “VietJet is a major player there.”
“We are excited to introduce the latest Boeing 737 MAX 10 to our rapidly growing fleet. These latest aircraft will fit perfectly into our development strategy,” said Madam Nguyễn Thị Phương Thảo, President and CEO of VietJet in official statement.
As Vietnam’s first private airline and the country’s first low-cost airline, it needed aircraft to satisfy growing demand on high-density domestic routes in addition to popular routes across Asia.
Until then, VietJet had ordered aircraft from Airbus, including a bumper order for 92 jets in December 2013. In 2016, VietJet finalized order for 100 high-performance 737 Max 8 aircraft.
According to Reuters, once the transaction is finalized, VietJet will change into the most important MAX 10 customer in Asia, and deliveries are expected to happen between 2022 and 2025, the businesses say.
According to Boeing, Under the agreement, Boeing will work with VietJet to expand technical and engineering expertise and train pilots and technicians in Vietnam, helping to further develop the industrial aviation ecosystem within the developing country.
Boeing may even support VietJet in improving its management capabilities on the airline and within the country.
