Vietnam Airlines Nears Multi Billion Dollar Deal for 50 737 MAX

September 10, 2023

HANOI, 10 SEP | Vietnamese flag carrier, Vietnam Airlines, is reportedly near a multi-billion dollar deal for 50 Boeing 737 MAX jets, which could be placed as soon as this month.

The deal, estimated to be worth USD $7.5 Billion, is expected to include either the -10 or -8 variants of the type. It will also make the MAX Vietnam Airlines' only non-Airbus narrowbody jet as the airline currently relies on their A321s for such short-haul journeys. The airline has a brief history with the 737, as they operated 2 Boeing 737-300s back in 1992.

Vietnam Airlines recorded a net loss earlier in the year, and desperately needs a mode to escape back into the green. With Vietnam as the world's fifth fastest-growing aviation market (in 2022) when it lifted COVID-19 travel restrictions, it is expected that the country will serve 150 million air transport passengers by 2035. Therefore, Vietnam Airlines also needs more equipment to keep up and serve the demand.

However, it is not guaranteed that this deal will grow through. Back in 2019, it was also speculated that the airline was in talks with the airline for 50 to 100 Boeing 737 MAX 8 jets, but nothing materialised.

On the other hand, rival VietJet, has a previous deal with the American manufacturer of 200 MAX jets, which poses as a major threat to the world-class Vietnam Airlines.

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Sources

- Planespotters.net
- Reuters
- Bloomberg