Vietjet Air, Av Airfinance Sign $300M Fleet Expansion Deal

Vietnamese airline Vietjet Air has entered into a financial agreement worth $300m with AV AirFinance to expand its fleet.

The agreement is part of efforts to strengthen economic and trade relations between the US and Vietnam.

The gold standard of business intelligence.

Find out more

It is part of several aircraft financing transactions, under which Vietjet has secured more than $4bn from US financial institutions.

These funds will support the airline’s plan to introduce nearly 300 new aircraft from 2025 to 2027.

The first deliveries of Boeing 737 MAX aircraft, from an order of 200 valued at more than $24bn, are expected to commence in 2025.

This order was initially announced in February 2019, during a visit by US President Donald Trump to Vietnam.

AV AirFinance CEO Stephen Murphy said: “We are delighted to be a long-term strategic partner of Vietjet. This new commitment reflects our strong relationship and willingness to support Vietjet’s resurgent growth in the Asia-Pacific region via new generation aircraft.”

Vietjet is also in discussions to expand this order further as part of its global growth strategy.

In addition to its collaboration with Boeing, Vietjet has formed partnerships with US companies, including GE, Pratt & Whitney, and Honeywell, with contracts totalling $50bn. Ongoing negotiations may add another $14bn to this figure.

The airline’s agreements with GE and Pratt & Whitney for engine and technical services alone exceed $10bn.

Vietjet is also enhancing its technology partnerships with firms such as Microsoft, Apple, and Google and exploring collaboration with SpaceX to incorporate advanced technologies into its fleet.

Currently, Vietjet operates a fleet of more than 115 fuel-efficient aircraft, with more than 400 additional aircraft on order.

Vietjet chairwoman Dr Nguyen Thi Phuong Thao said: “I am steadfast in my commitment to working tirelessly and fostering global partnerships that help bridge cultures, economies, and technologies between Vietnam, the US, and the wider world.”

In February this year, Vietjet partnered with OpenAirlines to enhance its flight operations using AI-based technology.

As the first airline in Vietnam to adopt SkyBreathe, Vietjet will utilise this AI-driven platform to analyse flight data and optimise fuel consumption by integrating information from various sources, including aircraft data and fuel reports.

In 2019, Vietjet confirmed an order for 15 A321XLR aircraft from Airbus.