Vietjet signed $18-billion deals on sidelines of Trump-Kim summit

Vietjet signed a deal this morning with Boeing for purchasing 100 new 737 MAX airplanes worth $12.7 billion according to the manufacturer’s list prices.

Vietjet President and CEO Nguyen Thi Phuong Thao and Boeing Commercial Airplanes President & CEO Kevin McAllister signed deal at the witness of Vietnam Communist Party General Secretary and President Nguyen Phu Trong and U.S. President Donald Trump. The event took place one the sidelines of the U.S. - North Korea Summit in Hanoi.

The deal brings the number of jets the Vietnamese carrier has ordered the American manufacturer to 200.

Earlier in 2016, Vietjet signed a 100 B737 MAX order, setting the mark for the largest commercial jet purchase in Vietnam’s aviation sector, at the time and making the airline currently the largest customer of the B737 MAX model in Asia.

Vietjet President and CEO Nguyen Thi Phuong Thao said: “The deal for 100 new airplanes and other agreements for 200 B737 MAX airplanes today are important moves for us to meet our international flight network expansion plan with a higher capacity, thus offering our passengers more exciting experiences when being able to fly to more new international destinations.”

“Vietjet and the country’s burgeoning aviation sector are clearly enablers, helping to stimulate travel within Vietnam and connecting Vietnam with the rest of Asia”, said Boeing Commercial Airplanes President and CEO Kevin McAllister.

In addition to airplane purchases, Boeing will partner with Vietjet to enhance technical and engineering expertise, train pilots and technicians, and improve management capabilities at the airline and in Vietnam.

On the same day, Vietjet and General Electric also signed a long-term engine support agreement to equip aircraft with LEAP-1B engines, which is valued at $5.3 billion - according to the manufacturer’s list prices.

The agreement includes spare engines and support packages to facilitate the airline’s already-ordered new and modern aircraft. Thus, the total value of signed deals between Vietjet and US companies on this occasion will reach $18 billion.

During the meeting between Trong and Trump this morning, Boeing has also inked an agreement to sell 10 787-9 Dreamliner to Bamboo Airways.