SUMMARY
- Vietnam Airlines considers buying 50 Boeing 737 Max jets.
- Boeing's previous landmark sale to VietJet included 200 aircraft.
- Vietnam's aviation market surges post-COVID restrictions.
Vietnam Airlines is on the brink of a major deal, eyeing the purchase of approximately 50 Boeing 737 Max jets, with the transaction estimated at a hefty $7.5 billion.
This information, disclosed by an insider, coincides with U.S. President Joe Biden's diplomatic visit to Hanoi, aiming to strengthen bonds with the Southeast Asian nation. While the official numbers are impressive, insiders hint that companies often get discounted rates on such large purchases.
It's noteworthy that Boeing had previously struck a deal with VietJet, Vietnam Airlines' competition, to sell them 200 of these aircraft. Last year, after lifting COVID-19 travel bans, Vietnam rose to prominence as the fifth fastest-growing aviation market.
Meanwhile, despite the dark shadow of two unfortunate crashes in 2018 and 2019, the Boeing 737 Max jets resumed their flights towards the close of 2020. As for Vietnam Airlines' financial health, they reported losses amounting to around $53.96 million in the recent quarter, marking their 14th consecutive quarter in the red, attributed to soaring fuel costs and various economic challenges.
On a different front, Boeing has been engaging with Vietnamese officials for potential defense deals, which could include drones and helicopters. Wrapping up, the Virginia-based Boeing company aims to enhance its strong ties with its six Vietnamese suppliers.
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