Vietnam budget airline Vietjet to buy 20 Airbus A330neo widebodies

Vietnam’s budget airline Vietjet has signed a memorandum of understanding with Airbus to purchase 20 wide-body aircraft A330neo, the European aerospace corporation announced Thursday.

When finalized, this will be Vietjet’s first-ever widebody purchase order as previously the carrier only leased such kind of aircraft.

The aircraft will be operated on the carrier’s growing long range network, as well as on high capacity regional services. They will replace the carrier’s current fleet of leased A330-300s, as well as providing for network expansion, Airbus said.

"The new A330neo aircraft is a strategic addition to comprehensively modernize Vietjet's fleet, enhancing operational capabilities to support our global flight network expansion plan,” said Vietjet CEO Dinh Viet Phuong.

“Its fuel-efficient new-generation design aligns with our sustainable development strategy and ESG goals, aiming for net-zero emissions by 2050. With the introduction of the A330neo, passengers can look forward to longer-range, well-equipped flights with excellent services at more competitive fares," the executive added.

Christian Scherer, CEO of commercial aircraft business at Airbus, said: “The A330neo will enable the airline to achieve the lowest possible operating costs per seat and continue offering its customers the best possible value wherever they fly.”

Powered by the latest generation Rolls-Royce Trent 7000 engines, the A330-900 is capable of flying 13,300 kilometers non-stop. At the end of January 2024, the A330 family had accumulated 1,771 firm orders from more than 130 customers worldwide, according to Airbus.

Vietjet picks Pratt & Whitney engines for 19 new Airbus planes

A day earlier, Vietjet selected Pratt & Whitney’s GTF engines to power 19 additional Airbus A321neo aircraft. The two sides signed an agreement for the cooperation on Wednesday within the Singapore airshow, the biggest airshow in Asia.

Vietjet received its first A321neo aircraft in 2018 and currently operates a fleet of 24 GTF-powered A321neo aircraft. Combined with the airline's previous orders, Vietjet has committed to up to 87 aircraft of this type.

Vietjet is a rapidly growing airline with an expansive fleet and flight network, said Vietjet CEO Phuong. “We are confident about the GTF-powered aircraft that provide fuel efficiency and reduce the environmental impact,” the executive added.

Rick Deurloo, president of commercial engines at Pratt & Whitney, said: "GTF engines provide Vietjet with some of the lowest fuel consumption and emissions in the region."

Besides, Pratt & Whitney will provide Vietjet with engine maintenance through an EngineWise® Comprehensive service agreement.

In November 2023, Pratt & Whitney announced that it has detected problems with some PW1100 engines on Airbus A321neo. The Civil Aviation Authority of Vietnam then asked all Vietnamese airlines with aircraft equiped with such engine to absolutely follow directions given by Pratt & Whitney.

Vietjet, listed on the Ho Chi Minh Stock Exchange (HoSE) as VJC, reported net revenue of VND62,000 billion ($2.54 billion), up 56% year-on-year, in the fourth quarter of last year.

For the whole of 2023, VJC’s net revenue reached VND62,500 billion ($2.56 billion), up 56% year-on-year. Its net profit hit VND344 billion ($11.12 million) while it made a loss of VND2,262 billion in the previous year.

With these results, Vietjet exceeded the year revenue target by 24% (VND50,178 billion or $2.06 billion), but its profit was equal to just 6% of the VND1,000 billion ($41 million) target.