Vietjet borrows $550 million to buy Boeing aircraft

Sep 12, 2023 | 11:57 AM GMT+7

TheLEADERVietjet and Carlyle Group has signed an aircraft finance agreement worth US$550 million during the official visit of the US President Joe Biden to Vietnam.

Vietjet borrows $550 million to buy Boeing aircraft
Vietjet Chairwoman Nguyen Thi Phuong Thao (middle) witnesses the agreement signing for aircraft funding between Carlyle Aviation Partners and Vietjet

Carlyle Aviation Partners, a wholly own member of the Carlyle Group, will finance the 737 Max aircraft from the order of 200 aircraft between Vietjet and Boeing. This is a significant aircraft order and considered one of the largest commercial contracts and contributes greatly to the trade balance between Vietnam and the US to date.

Robert Korn, co-founder and president of Carlyle Aviation Partners, said the company has witnessed Vietjet’s aggressive growth over the last decade. 

"The airline has offered passengers reasonable fares and convenient travel options; thus contributing positively to the aviation and tourism development; also fostering investment between Vietnam and the international community”, he said.

During the official visit of US President Joe Biden to Vietnam, Vietjet and Boeing have agreed on the delivery timeline of the first batch of Vietjet’s 200 B737 Max order. This order, which is worth over $25 billion, will be implemented in five years with the first delivery of 12 aircraft scheduled for 2024.

Accordingly, the first batch of 737 Max will be delivered to Thai Vietjet, the affiliate company founded by Vietjet. Thai Vietjet is currently one of the leading airlines in Thailand, featuring Vietjet’s brand and images and favored by travelers in the region.