Vietnamese carrier signs deal to purchase 100 Boeing planes during Obama trip
U.S. President Barack Obama (L) and Vietnamese State President Tran Dai Quang look on as Boeing and Vietjet executives exchange an agreement note at a signing ceremony in Hanoi on May 23, 2016.
Low-cost carrier Vietjet closed Monday an enormous order of 100 aircraft with American planemaker Boeing, one of the first deals signed during U.S. President Barack Obama’s ongoing trip to Vietnam.
The historic US$11.3 billion order was signed by Vietjet president and CEO Nguyen Thi Phương Thao and Boeing Commercial Airplanes President and CEO Ray Conner, witnessed by the visiting U.S. leader and his Vietnamese counterpart Tran Dai Quang.
The order includes 100 737 MAX 200 airplanes, the largest-ever single commercial airplane purchase in Vietnam’s aviation industry, according to Vietjet.
“We are honored to be joined by President Tran Dai Quang and President Obama for this historic milestone and order of 100 737 MAX airplanes,” Conner said, adding Boeing is proud to play an integral role in advancing the Vietnamese aviation industry.
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market, according to Vietjet. The new single-aisle airplane will deliver 20 percent lower fuel use than the first Next-Generation 737s.
CEO Thao said investing in a fleet of B737 Max 200 will accommodate the 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 contributing in the integration and development of the aviation industry of Vietnam,” she said.
The airplanes in this purchase will be delivered to Vietjet from 2019 until 2023 for supporting the Vietnamese carrier to continuously extend the domestic network as well as international one in the region.
This agreement will help Vietjet increase the fleet to more than 200 aircraft by the end of 2023, with the most modern and advanced technology in the world.
Also on Monday morning, Vietjet signed another agreement with Pratt & Whitney of United Technologies Corp. over the supply of aircraft engines to power the airline’s order of aircraft A320NEO and A321NEO, as well as technical and maintenance services for the fleet.
The signature of the $3.04 billion deal was also witnessed by President Obama and President Quang.
Vietjet said the agreement is a significant event following the signing of a memorandum of understanding between Vietjet and Pratt & Whitney at Singapore Airshow in February this year.
Pratt & Whitney engines allow the carrier to enjoy greatly operational efficiency and 17-percent lower fuel consumption for all flights which, Vietjet said not only brings forth economic efficiency but also significantly contributes to environmental protection.
The Vietjet-Boeing pact is one of the first deals between a Vietnamese and American company to be clinched on the Vietnam trip of President Obama, who arrived in Hanoi on Sunday night.
As his official visit started on Monday morning, the U.S. leader has so far met with top Vietnamese leaders, including President Quang and Nguyen Thi Kim Ngan, chairwoman of the lawmaking National Assembly.
He is scheduled to meet with Prime Minister Nguyen Xuan Phuc and Party General Secretary Nguyen Phu Trong as part of the Monday activities.
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