Vietnam Airlines plans to spend $10bln on 50 Boeing aircraft

National flag carrier Vietnam Airlines has signed a $10 billion deal with Boeing to buy 50 737 MAX jets, with handover scheduled for the 2027-2030 period.

An MoU on the deal was signed between the two sides on September 11, on the occasion of US President Joe Biden’s State visit to Vietnam. It holds special significance in the context of the two countries having elevated their relationship to a Comprehensive Strategic Partnership.

Under the MoU, the two sides will closely cooperate in research and assessment and promptly report to relevant authorities for consideration, acting as a basis to advance negotiations and complete procedures.

Mr. Dang Ngoc Hoa, Chairman of Vietnam Airlines, said the carrier is making plans to expand its fleet in the 2025-2030 period with a vision to 2035, in which aircraft investment is key in ensuring its targets are achieved in the post-pandemic period.

“The new narrow-body aircraft fleet will help the airline improve service quality for domestic and regional routes,” he said. “Vietnam Airlines plans to add about 60 narrow-body aircraft by 2030 and 100 aircraft in total by 2035.”

Mr. Brad McMullen, Senior Vice President of Boeing Commercial Sales, said Southeast Asia is one of the world’s fastest-growing aviation markets, and the 737 MAX is the perfect aircraft for Vietnam Airlines to efficiently meet that regional demand.

“Boeing greatly values its historic partnership with Vietnam Airlines, dating back to 1995, when the airline first leased Boeing 767s,” he added.

Vietnam Airlines’ fleet currently stands at 100 aircraft, including 65 narrow-body aircraft, operating more than 97 routes to 21 domestic destinations and 29 international destinations, connecting major cities around the world with attractive tourist destinations in Vietnam.. The airline said it needs to add about 60 new narrow-body aircraft by 2030 and 100 by 2035.

The Boeing 737 MAX series boasts a seating capacity of up to 230 passengers and has a flight range of over 3,000 km.