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Boeing Bags 110 Jet Orders from Two Vietnamese Carriers

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Feb. 27 2019, Published 8:05 a.m. ET

Vietnamese carriers order 110 Boeing jets

Boeing (BA) announced late Tuesday night that it had received an order for 110 planes worth more than $15 billion from two of the largest Vietnamese air carriers. The largest part of the order came from VietJet Aviation, which signed a deal for 100 Boeing 737 MAX series jets worth $12.7 billion.

The aerospace and defense contractor revealed that the deal includes 80 of its MAX 10 and 20 of its MAX 8 variants. Further, the company disclosed that the agreement was provisionally made last year.

Last week Reuters reported that VietJet is likely to sign a deal for 100 Boeing 737 MAX aircraft. The financial news and data provider had also said that the agreement would be signed on the sidelines of the Donald Trump and Kim Jong Un summit in the Vietnamese capital of Hanoi.

This is the second time in the last three years that VietJet has placed such a massive order for Boeing’s 737 MAX jets. The last time that the company placed orders for a similar model and the same quantity was when Barack Obama visited the country in 2016.

Apart from the VietJet deal, Boeing also received orders from another Vietnamese airline, Bamboo Airways. Bamboo has signed a contract to buy ten Boeing 787 widebody aircraft.

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Rising orders for 737 series

The 737 series models have been one of the most significant contributors to Boeing’s revenues. The model is said to be the aircraft manufacturer’s most advanced and fuel-efficient jet in the single-aisle category.

The 737 series models are Boeing’s fastest-selling planes in history. Boeing has received over 5,000 orders from 100 customers worldwide for this series aircraft. Among the major US carriers (IYT), Southwest Airlines (LUV) has placed the biggest order of 280 jets. American Airlines (AAL) and United Continental (UAL) have signed deals for 100 planes each.

Last year, most of Boeing’s orders were for the single-aisle 737 families. The aircraft manufacturer booked a total order for 893 aircraft in 2018 of which 762 were for the 737 series models.

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