U.S. aerospace company Boeing and Vietnam low-cost airline VietJet have signed a memorandum of understanding for an additional one hundred 737 MAX airplanes.
The deal would be the airplane maker’s largest commitment in Asia and is seen to double the Vietnamese carrier’s 737 MAX fleet to 200.
The agreement, which includes eighty 737 MAX 10s and twenty 737 MAX 8s, is valued at more than US$12.7 billion at current list prices. Boeing said in a statement. The transaction was closed on July 18 at the 2018 Farnborough International in the UK.
The low-cost carrier will become the largest MAX 10 customer in Asia once the deal is completed, said Boeing.
VietJet plans to leverage the added capacity of the MAX 10 to tap into the demand on high-dense domestic routes as well as popular destinations throughout Asia.
“These new airplanes will fit perfectly into our growth strategy, providing the efficiency and range for VietJet to expand its route network and offer more international destinations for our customers and expand alliances across Asia Pacific, the fastest growing aviation market in the world,” said Nguyen Thị Phuong Thao, president and CEO of VietJet.
As part of the agreement, Boeing will partner with VietJet to enhance technical and engineering expertise and the training of pilots and technicians in Vietnam. Boeing will also support VietJet in improving management capabilities at the airline and in the country.
VietJet is Vietnam’s first privately owned airline and is also the first low-cost carrier in the country. The airline is in the midst of bolstering its fleet to allow for expansion of its regional network.
In 2016, VietJet finalized an order for 100 high-capacity 737 MAX 8 airplanes, which set the mark for the largest ever single commercial airplane purchase in Vietnam aviation.
The 737 MAX family achieves superior fuel efficiency and range through the latest CFM International LEAP-1B engines, advanced technology winglets, and other improvements. The jet also features the signature Boeing Sky Interior and large flight deck displays.
The 737 MAX 10 is the largest variant in the family. At 43.8 meters long, the airplane can seat a maximum of 230 passengers and offer airlines the lowest seat-mile cost ever in a single-aisle aircraft. The 737 MAX is the fastest selling airplane in Boeing history, accumulating nearly 4,700 orders from more than 100 customers worldwide.
Photo courtesy of Boeing
