Vietjet, Boeing to fulfill order for 200 aircraft

May, 27/2022 - 13:50

Vietjet’s order of 200 aircraft from Boeing is a significant deal contributing to the bilateral trade balance of the two countries. The order has been formed through three US Presidencies with important developments following growing diplomatic and economic relations between the two countries in recent years.

HÀ NỘI — Chairman of the Vietnamese National Assembly Vương Đình Huệ has congratulated Boeing and Vietjet Air on the agreement for structuring and continuous implementation of the order contract of 200 Boeing 737 aircraft at the recent meeting with Boeing’s Senior Vice President Michael Arthur. 

The agreement was reached during Việt Nam's Prime Minister Phạm Minh Chính’s official visit to visit the US and United Nations and attendance at the Special ASEAN-US Summit.

Vietjet’s order of 200 aircraft from Boeing is a significant deal contributing to the bilateral trade balance of the two countries. The order has been formed through three US Presidencies with important developments following growing diplomatic and economic relations between the two countries in recent years.

A photo of Vietjet and Boeing signing the first 100 aircraft order contract in 2016, which was signed and presented to Vietjet by the 44th US President Barack Obama. — Photo courtesy of Vietjet

In 2016, Vietjet Air ordered 100 of the most modern Boeing aircraft, witnessed by US President Barack Obama during his visit to Việt Nam. The deal gained global attention on the impressive innovation of Việt Nam’s economy as it was the first time a private airline entered such a huge order with Boeing, one of the US prides, throughout its hundred-year-old history.

Prior to the deal, Vietjet had also signed the contract with Airbus for ordering A320-321 airplanes. The airline has already received and operated nearly 100 Airbus airplanes together with Airbus’s comprehensive support on technical services and the establishment of an aviation academy.

In 2019, Vietjet and Boeing agreed to increase the total order to 200 airplanes, witnessed by former US President Donald Trump in Hà Nội. President Trump once said that the signing ceremony was one of the most “beautiful” events during his visit to Việt Nam.

Besides the aircraft order, Vietjet also signed the long-term engine support with CFM International and a joint venture with General Electric, including engine supply and technical services. The huge aircraft order attracted attention not only for the tens-of-billion-dollar value scale but also for its progressive meaning to the two companies and two economies.

Việt Nam's Communist Party General Secretary Nguyễn Phú Trọng and former US President Donald Trump witnessed the signing to increase the order to 200 aircraft in 2019.  — Photo courtesy of Vietjet

Under the presidency of Joe Biden, current US President, on the occasion of the official visit of Prime Minister Phạm Minh Chính to the US this year, the order was agreed to continue by Vietjet and Boeing, after a hiatus due to unexpected events with the Boeing 737 Max and the COVID-19 pandemic. Accordingly, Vietjet will receive Boeing's new generation of Boeing 737 aircraft with a delivery schedule in line with the development and business strategy of the Vietnamese airline.

The agreement of 200 aircraft delivery was interrupted due to the 737 Max’s trouble and the impacts of COVID-19 pandemic to Boeing’s global supply chain. Many orders and aircraft delivery plans around the world have been cancelled or delayed indefinitely. Vietjet was significantly affected when the 737 Max was not approved by authorities and Boeing could not deliver on time.

Amid the outbreak of COVID-19 epidemic, Vietjet transported millions of medical masks, which was in short supply around the world, to American people.

Volunteers on a Vietjet flight. — Photo courtesy of Vietjet

The Vietnamese private airline has bravely strived through the pandemic, maintaining its operating capacity and financial capacity for post-pandemic development. The fact that Vietjet and Boeing agreed to continue implementing the signed agreements is a very positive milestone in the long-term trusting relationship between the two countries, which was the result of the economic diplomacy of the Vietnamese government’s leaders. Under this negotiation, Vietjet and Boeing mutually agreed that the aimed goals must be visionary strategies with long-term objectives.

Acting on behalf of Boeing Corporation and to combat climate change, reduce CO2 emissions, research and manufacture components, manufacture software, support the development of aviation and airport infrastructure, invest in insurance activities, technical maintenance, including high technology, the goal is to build Việt Nam into an aviation hub of the region and the world.

As for Vietjet, given that the aviation market has just begun to recover, and infrastructure is still limited in Việt Nam, this private airline has an ambitious plan to bring "Vietnamese flags and colours" to exploit new airspaces with strong and comprehensive support commitment of the world's leading aircraft manufacturer Boeing.

Amid the COVID-19 pandemic outbreak when face masks were in scarcity, Vietjet donated millions of face masks to the US people.— Photo courtesy of Vietjet

John Kerry, who is the 68th US Secretary of State and now a climate envoy, plays an active role in Boeing's cooperation programme with Vietjet on fighting climate change, reducing carbon emissions, usage of aircraft sustainable fuel and action programs for Việt Nam.

With the direction of becoming a global airline since its establishment, Vietjet not only provides flying opportunities for millions of people who have never boarded a flight, but also contributes to the development of the local economy, promoting changes in the world economy, new management policies and service providers to improve operating standards in Việt Nam.

Vietjet's order is expected to bring 200,000 jobs to the US labour market, worth US$35 billion, including $24.2 billion worth of aircraft orders and $10.8 million worth of engine engineering services.

The achieved results not only boost growth for Việt Nam's aviation industry and economy, but also attract more domestic and foreign investors, including large corporations such as Boeing and also the US economy, the largest economy in the world. — VNS

 

 

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