Vietnam Airlines' multibillion dollar deal to buy aircraft from Boeing is a big step in the country's strategy to boost its rapidly growing aviation industry.
The White House said on Monday that Vietnam Airlines’ deal to buy 50 737 Max jets from U.S. planemaker Boeing is worth $7.8 billion.
The statement confirms the deal value that Reuters had reported on Sunday, citing a source. Reuters also previously reported Boeing’s plan to sell the jets to Vietnam Air.
Boeing and Vietnam Airlines did not immediately respond to Reuters’ requests for comment. The deal between the two companies was announced by the White House on Sunday.
Vietnam was the world’s fifth fastest-growing aviation market in 2022 when it lifted Covid-19 travel restrictions, according to the International Air Transport Association (IATA), which predicts the country will serve 150 million air transport passengers by 2035.
Boeing also has a deal with Vietnam Airlines’ rival VietJet for the sale of 200 of its 737 MAX planes.
U.S. President Joe Biden is currently on a visit to Hanoi, with top company executives using that opportunity to forge business partnerships.
Other deals unveiled by the White House during Biden’s visit included plans by Microsoft to make a “generative AI-based solution tailored for Vietnam and emerging markets”, and Nvidia partnering with Vietnam’s FPT, Viettel and Vingroup, VinFast’s parent company, on AI in the country.
(Reporting by Shubham Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
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Photo credit: Vietnam Airlines has committed to a massive Boeing order. Aero Icarus / Flickr