Vietjet, Boeing reach agreement on 200-aircraft contract
05/28/2022 08:54
Vietjet’s contract with Boeing is one of the significant deals contributing to the countries’ bilateral trade balance and has been forged through three US Presidencies with important strides following diplomatic and economic development milestones between the two countries in the recent years.
In 2016, Vietjet Air ordered 100 Boeing aircraft in the witness of US President Barack Obama during his visit to Vietnam. The deal gained global attention on the impressive innovation of Vietnam’s economy as it was the first time a private airline entered such a huge order with Boeing.
Besides the aircraft order, Vietjet also signed the long-term engine support with CFM International, the joint venture of General Electric, including engine supply and technical services. The huge aircraft order attracted attention not only for tens-of-billion-US-dollar value scale but also for its progressive meaning to the two companies and the two economies.
This year, Vietjet and Boeing have agreed on the continuation of the agreement 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 737 aircraft with the new delivery schedule in line with the Vietnamese airline’s development and business strategy.
With the direction to become 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 Vietnam. Vietjet’s order is expected to bring 200,000 jobs to the US labour market, worth 35 billion USD, including 24.2 billion USD worth of aircraft orders and 10.8 billion USD worth of engine engineering services. The achieved results not only boost growth for Vietnam’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./.