VietJet Air has secured a $300 million financial agreement with AV AirFinance, strengthening its fleet expansion plans while potentially providing Boeing Co. BA with additional business as the aircraft manufacturer works to recover from recent challenges.
What Happened: The deal, signed in Washington, D.C. on Wednesday in the presence of Vietnam’s Deputy Prime Minister Ho Duc Phoc, comes as Boeing actively rebuilds its order pipeline following a difficult period marked by safety concerns, production halts, and delivery shortfalls.
On Friday, Reuters reported that the airline was also considering buying 20 wide-body Boeing 787 aircraft.
VietJet will begin taking delivery of its first Boeing 737 MAX aircraft this year from a landmark 200-plane order valued at over $24 billion, initially announced in February 2019. The Vietnamese carrier is currently in discussions to expand this historic order further, representing a potential bright spot for Boeing amid its recovery efforts.
“We are delighted to be a long-term strategic partner of Vietjet,” said Stephen Murphy, CEO of AV AirFinance. “This new commitment reflects our strong relationship and willingness to support Vietjet’s resurgent growth in the Asia-Pacific region via new generation aircraft.”
Boeing did not immediately respond to Benzinga's request for comment.
Why It Matters: Boeing has recently shown signs of momentum, securing five major contracts in late March from global customers including Malaysia Aviation Group, Japan Airlines, Korean Air, the U.S. Army, and BOC Aviation. These deals have bolstered Boeing’s order book.
For VietJet, the AV AirFinance agreement is part of broader aircraft financing arrangements totaling over $4 billion with U.S. financial institutions.
The airline has established partnerships with major American corporations, including General Electric Co. GE, Raytheon Technologies Corp.‘s RTX Pratt & Whitney division, and Honeywell International Inc. HON, with total U.S. trade commitments reaching approximately $64 billion.
VietJet currently operates over 115 aircraft with more than 400 additional planes on order as it pursues global expansion.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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