As part of diplomatic efforts, Vietnam Airlines signed a contract to purchase 50 737 MAX 8 jets with Boeing on Monday. The state-owned airline, despite operating the 787, only uses Airbus A321s in its single-aisle fleet.
The agreement was signed in Hanoi, during the visit of US President Joe Biden, and was attended by Prime Minister Pham Minh Chinh of Vietnam and Secretary of State Antony Blinken.
The two countries, which spent several years at war in the 1960s and early 1970s, are rehearsing a rapprochement. The sale of the jets is also considered a kind of response to Chinese influence in the region, despite the US government denying any relationship to political issues.
Vietnam Airlines is currently competing in the market with private airlines Bamboo Airways and Vietjet, which also have orders for the 737 MAX – ten aircraft for the first company and 200 for the second company.
“In line with Vietnam Airlines’ 2025-2030 fleet strategy and a vision to 2035, aircraft investment is a crucial project that underpins positive recovery momentum and prosperous outlook for the airline, said Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines “The new narrow-body fleet will allow us to foster our overall development and extend our high-quality service on Vietnam Airlines’ domestic and Asian routes, as well as modernize our fuel-efficient fleet.”
“Southeast Asia is one of the world’s fastest growing aviation markets, and the 737 MAX is the perfect airplane for Vietnam Airlines to efficiently meet that regional demand,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “We value our historic partnership with Vietnam Airlines, dating back to 1995 when the airline first leased 767s.”
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Despite orders from Boeing, Airbus dominates sales of commercial aircraft in Vietnam, with a large presence of the A320 family.