Vietnam Airlines Commits US$7.8 Billion for a Fleet Boost with 50 Boeing 737 Max Aircraft

• 20 September 2023
• International News
• 1881 Views

Vietnam Airlines has inked an agreement worth US$7.8 billion to acquire 50 Boeing 737 Max aircraft from the United States. The strategic move is aimed at modernising the airline’s fleet to cater to surging flight demands, according to Reuters on 11 September 2023.

The announcement of this significant agreement between Vietnam Airlines and Boeing was made by the White House during U.S. President Joe Biden’s visit to Hanoi.

Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, emphasised that this deal is pivotal for upgrading the airline’s fuel-efficient fleet. The addition of the new Boeing aircraft is expected to foster overall growth and elevate the quality of service on Vietnam Airlines’ domestic and Asian routes.

Brad McMullen, Boeing’s Senior Vice President of Commercial Sales and Marketing, highlighted that this order is strategically positioned to meet the escalating regional demand, especially in Southeast Asia, one of the world’s fastest-growing aviation markets.

Remarkably, the International Air Transport Association recognised Vietnam’s domestic aviation sector as the fastest to recover from post-COVID-19 restrictions in 2022. As restrictions eased, the country rapidly ascended to become the world’s fifth-fastest-growing aviation market. Predictions suggest that by 2035, Vietnam will serve an impressive 150 million air transport passengers.

Vietnam Airlines’ substantial investment in this Boeing fleet expansion aligns with its forward-looking approach to not only meet current demand but also position itself for a thriving future in the aviation industry.

• Business and Market
• Economy and Finance
• Airport and Aviation