Vietnam Airlines signs $10 bln deal to buy 50 Boeing aircraft

National flag carrier Vietnam Airlines has signed a $10 billion deal with Boeing to buy 50 737 Max jets, with handover scheduled for the period 2027-2030.

The MoU was signed on Monday on the occasion of President Joe Biden’s Vietnam visit.

The landmark deal is expected to support more than 30,000 jobs in the U.S., the White House said in a release.

The state-owned Vietnam Airlines now operates four aircraft models, namely Boeing 787, Airbus A350, Airbus A330, and Airbus A321.

Dang Ngoc Hoa, chairman of Vietnam Airlines, said the airline is making a plan to expand its aircraft fleet for the period 2025-2030, with a vision to 2035, in which aircraft investment is a key project to ensure the carrier's targets to be achieved in the post-pandemic recovery period.

"The new narrow-body aircraft fleet will help the airline improve service quality for domestic and regional routes. Vietnam Airlines plans to add about 60 narrow-body aircraft by 2030 and 100 aircraft in total by 2035," he said at a press meeting on the same day.

The 737 Max is a narrow-body aircraft, designed with 150-230 seats. Currently, 1,150 aircraft of this type are operated by 70 airlines around the world.

Vietnam banned flights of 737 Max in the country’s overflight zone in March 2019 amid two fatal accidents related to the planes of Ethiopian Airlines and Lion Air. The ban was lifted from end-2021 after Boeing had updated the aircraft.

Vietnam Airlines JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as HVN, is the second-biggest Vietnamese carrier in terms of passenger volume, according to the Civil Aviation Authority of Vietnam.

In the first seven months of this year, HVN operated 62,709 flights, carrying 11.88 million passengers. The top one was budget carrier Vietjet Air with 65,356 trips, transporting 14.29 million flyers.

In combination with Pacific Airlines and VASCO, two sister airlines of HVN under the Vietnam Airlines Group, the figure reached 14.3 million passengers, slightly higher than Vietjet Air’s.

The 737 MAX family offers carriers enhanced efficiency and route flexibility for short- and medium-haul air travel. The 737-8 can carry up to 210 passengers based on configuration with a range of 3,500 nautical miles, while the 737-10, the largest 737 MAX model, seats up to 230 passengers with a range of 3,100 nautical miles. Both variants reduce fuel use and carbon emissions by 20% compared to the airplanes they replace.

On average, each 737 MAX saves up to eight million pounds of CO2 emissions annually compared to the airplanes it replaces. The 737 MAX is a quieter airplane, with a 50% smaller noise footprint than the airplanes it replaces.