The contract to purchase 200 Boeing aircraft by Vietjet was interrupted due to the 737 Max’s issues, followed by the consequential impacts of the COVID-19 pandemic on Boeing's global supply chain. Many orders and aircraft delivery plans worldwide have been canceled or indefinitely postponed.
Vietjet’s operations, therefore, have been affected. While many airlines refused to fulfill their contracts, Vietjet and Boeing persisted in finding common grounds to meet and establish a mutual long-term strategy to continue the contract.
In particular, Vietjet Chairwoman Nguyen Thi Phuong Thao and Boeing Global President Dr. Brendan Nelson have agreed and satisfied with the commercial agreements. The two sides have included additional terms in the contract of 200 Boeing 737 Max aircraft, with a total value of 25 billion USD and their delivery is scheduled for the next five years. The first batch of 12 aircraft will be delivered to Vietjet in 2024.
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Vietjet Chairwoman Nguyen Thi Phuong Thao (L) and Boeing Global President Dr. Brendan Nelson (Photo: Vietjetair.com) |
Boeing and Vietjet will join hands to make Vietnam a centre for aviation services, including training, education, and maintenance, for both Vietnam and the international market. The two parties will also cooperate in the new technology adoption of artificial intelligence (AI), aviation technology, and green fuels, and reducing emissions in accordance with sustainable aviation criteria. In addition, there will be support for the development of aviation infrastructure, airport operational capability enhancement, and flight management.
Boeing will also promote Vietnam's participation in its global supply chain for aircraft production and aviation equipment.
Vietjet's aircraft order is expected to generate 200,000 job opportunities for the US labour market, contributing to the growth of bilateral trade relations, and is a testament for the successful business-to-business tie between the two countries. The achieved results have not only stimulated growth in the aviation industry and the Vietnamese economy but also attracted numerous investors, including major corporations and investors from the US, the world's largest economy.
Both parties have reached commercial agreements with the welcoming and congratulations of the US Special Presidential Envoy for Climate John Kerry. At a high-level conference on investment and innovation on September 11 in Hanoi, President Biden highly valued the opportunities for the two countries to enhance their relationship in such areas as investment and innovation, including the development of the aviation sector.
