VietJet Air and Boeing finalized an $11.3 billion order for 100 Boeing 737 airplanes in the largest single commercial airplane purchase in Vietnam aviation history, as the airline seeks to expand its reach.
"VietJet is efficiently operating a fleet of narrow body airplanes," said Madam Nguyễn Thị Phương Thảo during the deal signing, according to a news release. "Our investment in a fleet of B737 Max 200 will accommodate our strategy of growing Vietjet's coming international route network including long haul flights. Through this agreement, VietJet will contribute increasing bilateral trade turnover between Vietnam and the United States, as well as the integration and development of the aviation industry in Vietnam.”
The airplanes will be delivered from 2019 through 2023, with the end potentially resulting in more than 200 airplane in the VietJet fleet by the end of the deal.
The deal was signed at the Presidential Palace in Hanoi, Vietnam in the presence of Vietnam's President Tran Dai Quang and U.S. President Barack Obama, who was visiting Vietnam for the first time.
Boeing shares were up 0.41 percent at $127.91 in morning trading on May 23.
VietJet also purchased airplane engines from Pratt & Whitney, a Connecticut-based manufacturer, worth $3 billion, to power an order of 63 Airbus A320neo and A321neo family of aircraft, according to a news release. The engines will be delivered starting in 2017.
"We take great pride in VietJet selecting the game-changing Geared Turbofan engine to power their aircraft fleet," Rick Deurloo, Pratt & Whitney senior vice president of sales and marketing said in a news release. "Customers continuously recognize that this engine represents the pinnacle of modern aviation technology with unmatched double-digit reductions in fuel burn, noise and emissions."