Vietnam Airlines signs $10 billion deal to buy 50 Boeing aircraft

Vietnam Airlines has just signed a memorandum of understanding worth 10 billion USD to buy 50 Boeing 737 Max aircraft, expected to be delivered in the period 2027 - 2030.

Vietnam Airlines signed a memorandum of understanding with Boeing on September 11 during US President Joe Biden’s visit to Vietnam. According to this agreement, the two sides will closely coordinate to research, evaluate, and promptly report to competent authorities for consideration. This is the basis for promoting the negotiation process and completing procedures for Vietnam Airlines’ aircraft investment.

According to Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, the airline is developing a plan to develop its fleet for the period 2025-2030, with a vision to 2035, in which aircraft investment is a key project to ensure that its goals are achieved during the post-pandemic recovery period. At the same time, this narrow-body fleet conversion project will help the airline improve quality on domestic and regional routes. With narrow-body aircraft, Vietnam Airlines is expected to need to add about 60 aircraft by 2030 and a cumulative of about 100 aircraft by 2035.

The 737 Max is a narrow-body aircraft designed with 150-230 seats. Currently, this Boeing aircraft is operated by 70 airlines worldwide with more than 1,150 aircraft.

Leaders of Boeing and Vietnam Airlines at the press conference on the afternoon of September 11. Photo: VNA — Leaders of Boeing and Vietnam Airlines at the press conference on the afternoon of September 11. Photo: *VNA*

On the afternoon of September 11, leaders of Vietnam Airlines and Boeing held a press conference to share more information about this deal. Mr. Tran Thanh Hien, CFO of Vietnam Airlines, said that the airline expects to receive this batch of aircraft in the period 2027 - 2030 based on the delivery schedule from Boeing.

He said the financial situation of Vietnam Airlines as well as domestic airlines is still heavily affected after the pandemic. However, the fleet development project is part of the national airline's long-term strategy and needs to be commensurate with future development needs.

"Vietnam Airlines has 3-4 more years to prepare procedures for this deal, including raising capital. After today's event, Vietnam Airlines will continue to seek solutions and arrange capital sources suitable for the time of receiving the aircraft, ensuring the feasibility and effectiveness of the project," said the CFO of Vietnam Airlines.

According to Mr. Hien, Vietnam Airlines is confident in balancing part of the capital for this project through the overall restructuring process. The airline also believes in the support of Boeing, the US Government and financial institutions to carry out the purchase of 50 Boeing 737 Max aircraft.

At the same time, Vietnam Airlines will also work with domestic organizations to arrange the most suitable capital, including short- and medium-term solutions for prepayments (PDP Financing), sales and leaseback.

Regarding concerns about the difficulty in operating two narrow-body aircraft lines of Boeing and Airbus at the same time, CEO Le Hong Ha said that Vietnam Airlines has experience operating both Airbus A350 and Boeing 787 aircraft with a highly qualified technical company and staff. Therefore, maintaining and repairing Boeing 737 Max aircraft will not be difficult.

"If we add the Boeing 737 MAX to our fleet, Vietnam Airlines will have more opportunities to receive technology transfer of a new generation of aircraft, serving maintenance and repair for other airlines in the region when Long Thanh airport is completed," Mr. Ha informed.

Mr. Tu

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