Boeing, VietJet Sign Agreement for 100 737 MAX Airplanes
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July 18, 2018 - Farnborough
- Agreement includes 80 737 MAX 10s, which would be largest commitment in AsiaDeal to double Vietnamese carrier's 737 MAX fleet to 200
[NYSE:BA] and VietJet [HOSE: VJC] signed a Memorandum of Understanding today at the 2018 Farnborough International for an additional 100 737 MAX airplanes. The agreement, which includes 80 737 MAX 10s and 20 737 MAX 8s, is valued at more than $12.7 billionat current list prices.
The Vietnamese low-cost carrier will become the largest MAX 10 customer in Asia once the deal is completed. VietJet plans to leverage the added capacity of the MAX 10 to satisfy surging demand on high-dense domestic routes, as well as on popular destinations throughout Asia.
"We are excited to introduce Boeing's newest 737 MAX 10 into our rapidly growing fleet. These new airplanes will fit perfectly into our growth strategy, providing the efficiency and range for VietJet to expand its route network and offer more international destinations for our customers and expand alliances across Asia Pacific, the fastest growing aviation market in the world," said Madam Nguyễn Thị Phương Thảo, President and CEO of VietJet.
As part of the agreement, Boeing would partner with VietJet to enhance technical and engineering expertise and the training of pilots and technicians in Vietnam, helping to further develop the commercial aviation ecosystem in the growing country. Boeing will also support VietJet in improving management capabilities at the airline and in the country.
VietJet is Vietnam's first privately-owned airline and is also the first low-cost carrier in the country. The airline is in the midst of bolstering its world-class fleet with highly efficient and capable airplanes that will allow for expansion of its regional network.
In 2016, VietJet finalized an order for 100 high-capacity 737 MAX 8 airplanes, which set the mark for the largest-ever single commercial airplane purchase in Vietnam aviation.
"We are honored to deepen our strong partnership with VietJet as they become our newest 737 MAX 10 customer. Today's agreement for a repeat order from VietJet validates the best-in-class capabilities of the 737 MAX family of airplanes," said Kevin McAllister, president and CEO of Boeing Commercial Airplanes. "With this agreement, we take another major step in growing our partnership with VietJet, one that continues to contribute to the trade relationship between Vietnam and the United States. This agreement also grows Boeing's presence and partnerships across Asia Pacific, developing win-win partnerships in a region with tremendous development potential."
The deal will be reflected on Boeing's Orders and Deliveries website once it is finalized.
The 737 MAX family achieves superior fuel efficiency and range through the latest CFM International LEAP-1B engines, Advanced Technology winglets, and other improvements. The jet also features the signature Boeing Sky Interior and large flight deck displays.
The 737 MAX 10 is the largest variant in the family. At 43.8 m (143 ft 8 in) long, the airplane can seat a maximum of 230 passengers and offer airlines the lowest seat-mile cost ever in a single-aisle aircraft. The 737 MAX is the fastest-selling airplane in Boeing history, accumulating nearly 4,700 orders from more than 100 customers worldwide. For more information and feature content, visit www.boeing.com/commercial/737max.