Hanoi
Vietnam Airlines is reportedly set to sign an initial agreement to purchase around 50 Boeing 737 Max aircraft, in a deal worth approximately $10 billion. This development confirms earlier reports that Boeing was in talks to sell 50 of its 737 Max jets to the Vietnamese carrier. Boeing’s rival, VietJet, also has a deal with Boeing for the sale of 200 737 Max planes.
Vietnam’s aviation market has been rapidly growing, and in 2022, it was ranked as the fifth-fastest-growing aviation market globally. The country’s aviation sector experienced substantial growth after the easing of COVID-19 travel restrictions. The International Air Transport Association (IATA) predicts that Vietnam will serve 150 million air transport passengers by 2035.
Boeing’s 737 Max aircraft had faced significant setbacks after being grounded worldwide for several months following two fatal crashes in Indonesia and Ethiopia in 2018 and 2019. However, the aircraft gradually returned to service by the end of 2020 after extensive safety upgrades and regulatory approvals. Vietnam Airlines has faced financial challenges, reporting a net loss of 1.3 trillion dong ($53.96 million) in the second quarter of 2023. The carrier attributed these losses to factors such as rising fuel prices and other financial risks.
Boeing has also been engaged in discussions with Vietnamese authorities about potential sales of military equipment, including drones and helicopters, further solidifying its presence in the country. Boeing has already established relationships with six suppliers in Vietnam and is working to enhance their capabilities. Both Boeing and Vietnam Airlines have not officially commented on the reported agreement at the time of this writing.
