Vietjet signed $6.5 billion Airbus order

By Hoai An - Nov 06, 2018 | 06:31 AM GMT+7

TheLEADERVietjet and Airbus has just signed a deal for additional 50 A321neo aircraft worth up to $6.5 billion according to the manufacturer’s list price during a visit to Hanoi by French Prime Minister Edouard Philippe.

The agreement is a step further from the memorandum of understanding signed by the both parties at Farnborough (the UK) previously.

Vietjet made $6.5 billion Airbus order
The signing ceremony was witnessed by Prime Minister Nguyen Xuan Phuc and French Prime Minister Edouard Philippe during his official visit to Vietnam

The new order is to comprehensively realize Vietjet’s growth strategies and enhance its operation efficiency and capacity to expand flight network, especially on international routes.

In addition, it serves the carrier’s development of airline alliances across the Asia Pacific region, which sees the fastest aviation growth rate in the world.

Christian Scherer, Airbus Chief Commercial Officer, said: “We are honored to be a long-term partner of Vietjet along with the airline’s success and pleased to finalize this new order."

"The airline’s latest preference for the Airbus product is a testimony to a great endorsement for the A321 in the fast-growing market,” he added.

The A321neo is incorporated with the latest engines, aerodynamic advances and cabin innovations, offering a reduction in fuel consumption of at least 15 per cent per seat and up to 20 per cent in 2020.

As part of this agreement, Airbus also deploys a series of strategic partnership programs inclusive of trainings for pilots, technicians and engineers, flight management and flight safety management for Vietjet.

According to Vietjet’s announcement, it got good business results with strong growth although September was not the peak season of aviation and tourism industries.

Vietjet’s revenue stood at approximately $542 million, an increase of 105 per cent year on year thanks to the growth in air transport, ancillary and sale & leaseback revenue. 

Total profit before tax in the last quarter reached to $73 million, a 59 per cent increase compared to the same period of last year.

In the third quarter, Vietjet received three more new aircraft and the total number of operating aircraft until the end of 2018 is 65.