Vietjet to Close A 200-Aircraft Deal with Boeing

August 2022

During the Farnborough International Airshow in the United Kingdom in 2022, the low-cost airline Vietjet and Boeing reconfirmed a previously announced order for 200 737 MAX aircraft.

According to the agreement, Thai Vietjet, a Vietjet affiliate in Thailand, will receive the first 50 aircraft. Thai Vietjet is currently one of Thailand’s top domestic carriers and is well-liked among Thai people. In addition, Boeing is committed to assisting Vietjet with technology transfer, research, and development (R&D), technical services and training.

Vietjet first ordered 100 B737 in 2016, making it a significant deal for one of Boeing’s newest aircraft models at the time. Both parties increased the order to 200 aircraft in 2019, making this a record order for Boeing. However, the suspension of the 737 Max and the effects of COVID-19 on Boeing’s worldwide supply chain had halted the agreement until now. Since then, the carrier has overcome the challenges and maintained excellent operational and financial capability.

Vietjet’s Managing Director perceived this deal as an important milestone for Vietjet and Boeing, and in turn, for Vietnam-US trade relations. The deal from Vietjet is anticipated to generate 200,000 jobs for US workers and a total value of USD 35 billion, including orders for aircraft and engineering services. The agreement will also create hundreds of thousands of jobs and bring in investment for Vietnam’s aviation sector.

(Sources: VietnamPlus; VnExpress)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.