LONDON – Boeing has today sold up to $15 billion worth of aircraft to two different airlines in Vietnam.
These deals were witnessed by U.S President Donald Trump and Vietnamese President Nguyen Phu Trong, which no doubt will be part of the American strategy of growing in Asia.
Vicious Growth with VietJet…
The first big announcement came from VietJet, who even with the current order book of 100 737MAXs already, placed an order for another 100, thus doubling its
This deal alone was valued at $12.7 billion and consisted of 80 of the larger MAX10 variants as well as 20 more MAX8s accordingly.
This agreement also means that VietJet will become the largest operator of the MAX10 in Asia.
Commenting on the deal was President and CEO of VietJet Madam Nguyễn Thị Phương Thảo who emphasised how important the order book is to the airline’s growth plans.
“The deal for 200 Boeing 737 MAX airplanes today is an important move for us to keep up with our international flight network expansion plan with a higher capacity, thus offering our passengers with more exciting experiences when being able to fly to more new international destinations,”
“I believe that our fleet will have breakthroughs thanks to new-generation technologies, which helps improve flight quality and enhance operational reliability while reducing operating costs in the future. Passengers will then have more opportunities to fly with reasonable fares.”
“The contract signing ceremony, which is witnessed by the top leaders of Vietnam and the US on the occasion of the US-North Korea Summit in Hanoi, will mark a milestone in the two companies’ growth path.”
The first 100 737MAXs were ordered back in 2016 by VietJet, which at the time was the largest commercial jet purchase in Vietnam alone.
Kevin McAllister, CEO & President of Boeing Commercial Airplanes took the angle of significant economic expansion in Hanoi and citing this reason for upgrades in orders.
“We are pleased to expand our partnership with Vietjet and to support their impressive growth with new, advanced
“The economic expansion in Hanoi and across Vietnam is impressive. Vietjet and the country’s burgeoning aviation sector are clearly enablers, helping to stimulate travel within Vietnam and connecting Vietnam with the rest of Asia. We are proud to support this economic development, which in turn supports engineering and manufacturing jobs in the United States.”
The Start-Up Boost with Bamboo…
The announcements did not stop there. Bamboo Airways, a start-up airline founded in 2017 placed an order also today for 10 787-9 Dreamliners at a list price of $3 billion.
This order was initially labelled as a unidentified customer with Boeing’s Orders & Deliveries.
These 10 Dreamliners, with no delivery date set as of yet, will no doubt be part of the rapid growth strategy within Bamboo.
By the end of the year, the airline wants to offer up to 40 domestic routes as well as international services to Thailand, South Korea, Singapore, Japan, Taiwan and Australia with even broadening ambitions to go to Asia, Europe and North America.
Mr. Trinh Van Quyet, Chairman of the FLC Group that owns Bamboo Airways commented on this deal and how the Dreamliners will help with its long-term vision.
“Our long-term vision is to connect Vietnam with key markets in Asia, Europe and North America and the Dreamliner will enable us to launch these long-haul operations.”
“The 787’s superior operating economics and efficiency, as well as the passenger-pleasing interior of the Dreamliner, will allow us to successfully grow our business while enabling us to better serve our customers.”
Kevin McAllister also commented on this deal, but explained the benefits of the aircraft to Bamboo, especially as a start-up.
“The 787 Dreamliner’s unmatched efficiency, range and flexibility make it the perfect aeroplane for Bamboo Airways to achieve its long-range ambitions. We are excited to advance the partnership between Boeing and Bamboo Airways and we look forward to helping them connect Asia with Europe, North America and beyond,”
Bamboo will enjoy a reduction in fuel costs by up to 20% compared to any current generation aircraft in the skies.
It will also enhance creativity in route choice as the Dreamliner family has opened up more than 210 new non-stop routes since its entry into service.
A Taster for Paris?
Whilst we could be wrong on this, an order of this size could be a very subtle hint of what is to come at the Paris Air Show in Le Bourget in June.
By being able to announce orders that significant, it would have been suggested Boeing would have kept that under wraps until airshow season.
This could mean that the manufacturer has some big announcements to make at the air show or could be overcompensating for the announcement of the NMA program, which has been under speculation for a while.
Only time will tell for Boeing what the strategy will be and what it aims to present, whether it is to beat the likes of Airbus at orders or whether it will capitalise on any growth from Embraer’s commercial wing.
This week had also seen its $4.2 billion sale of the 80% wing of Embraer go through, offering the Brazilian angle of success going into Le Bourget for orders.