Vietjet and Boeing have reached a significant agreement regarding the 200 737 MAX orders during the U.S. President Joe Biden’s official visit to Vietnam. Vietjet Chairwoman Nguyen Thi Phuong Thao and Boeing Global President Brendan Nelson have agreed to take delivery of up to 12 737 MAX jets in 2024 and include additional terms in the contract of 200 737 MAX orders. The contract, which is worth more than US$25 billion with delivery schedule in five years from 2024, has been lauded as one of the largest commercial deals and contributed greatly to the trade balance between Vietnam and the United States to date.
The first batch of 737s will be delivered to Thai Vietjet, the affiliate company of Vietjet Group. Thai Vietjet is currently one of the leading airlines in Thailand, featuring Vietjet’s brand and images and favored by travelers in the region. Vietjet’s contract to purchase 200 Boeing narrow-body aircraft was interrupted due to the 737 MAX’s issues, followed by the consequential impacts of the Covid-19 pandemic on Boeing’s global supply chain. Many orders and aircraft delivery plans worldwide have been canceled or indefinitely postponed. While many airlines declined to fulfil their contracts, Vietjet and Boeing have persisted in finding common ground to meet and establish a mutual long-term strategy to carry out the contract.
Especially, Boeing and Vietjet will join hand to make Vietnam an international center for aviation services, including training, education, and maintenance. The two parties will also cooperate for new technology adoption of artificial intelligence (AI), aviation technology, green fuels, and reducing emissions in accordance with the aviation industry’s criteria. Both sides will additionally work on the support for the development of aviation infrastructure, airport operational capability enhancement, and flight management in Vietnam. Boeing will also look to promote Vietnam’s participation in its global supply chain for aircraft production and aviation equipment.
Vietjet’s order has been expected to bring 200,000 jobs to the U.S labor market and totally creates a value worth around US$35 billion, including also aircraft orders and engine engineering services. The results achieved by both companies have not only stimulated growth in the aviation industry and the Vietnamese economy but also attracted numerous investors, domestically and internationally, including major corporations and investors from the United States, the world’s largest economy.
On the sidelines of the U.S. President Joe Biden’s visit to Vietnam, Vietjet and Carlyle Aviation Partners, the US-based leading aviation finance and asset management company, also signed an aircraft finance agreement worth US$550 million to finance the 737 MAX aircraft’s pre-delivery payment (PDP).
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