Leadership & Strategy
Vietjet to sign US$6.5bn order with Airbus
May 20, 2020
Hanoi-based budget airliner Vietjet is on the verge of completing a US$6.5bn jet order with European aerospace manufacturing giant Airbus, Reuters reported
The deal will be finalised as part of the French Prime Minister’s visit to Hanoi on 2 November, according to Reuters’ sources, and will be the largest economic element of the visit.
Nguyen Thi Phuong Thao, Vietjet’s CEO, told Reuters earlier this week that the firm aims to maintain an average fleet age of three years in order to mitigate fuel and maintenance costs caused by ageing technology.
This order, as well as an additional order fielded with Boeing, signals the company’s willingness to invest heavily.
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Vietjet placed provisional orders for 100 Boeing 737 MAX jets alongside its order for 50 Airbus A321neo planes at the UK’s Farnborough Airshow in July this year, set for delivery between 2020 and 2025.
Reuters added that, in September, Vietnam and France agreed to grow their collaborative defence efforts.
VietnamPlus said on 31 October that Vietjet’s Q3 revenue had leapt up by 105% on the previous year to around $544.28mn, with an on-time performance of 83.5% and technical reliability of 99.66%.
It added that VietJet has also been awarded the highest ranking for airline safety in the world – seven stars – by AirlineRatings.com.