Vietnam Airlines, Boeing close to deal on 50 737 Max aircraft: Reuters

Robert Besser
13 Sep 2023, 23:34 GMT+10

Vietnam Airlines and Boeing are close to signing an agreement to buy 50 Boeing 737 Max planes worth US$7.5 billion
The deal's signing comes amid U.S. President Joe Biden's visit to Hanoi to enhance the relations between the former enemies
While the deal is potentially worth up to $7 billion at list prices, companies that buy planes in bulk can usually negotiate discounts

HANOI, Vietnam: Reuters reported over the weekend that Vietnam Airlines and Boeing are close to signing an agreement to buy 50 Boeing 737 Max planes worth US$7.5 billion.

The deal's signing comes amid U.S. President Joe Biden's visit to Hanoi to enhance the relations between the former enemies.

While the deal is potentially worth up to $7 billion at list prices, companies that buy planes in bulk can usually negotiate discounts.

Vietnam Airlines' rival VietJet also agreed a deal with Boeing for 200 737 MAX planes.

The International Air Transport Association (IATA) predicts Vietnam, the world's fifth fastest-growing aviation market in 2022 after it lifted COVID-19 travel restrictions, will serve 150 million air passengers by 2035.

After two fatal crashes in Indonesia and Ethiopia in 2018 and 2019, respectively, Boeing 737 Max jets were grounded worldwide for many months. They returned to service at the end of 2020.

Due to rising fuel prices and other financial risks, Vietnam Airlines recorded a net loss of $53.96 million in the second quarter of this year, its 14th quarter in the red, its financial statements showed.

Boeing and Vietnam Airlines have yet to respond to requests for comment.

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