Vietnam's VietJet Signs $11 Billion, 100-Plane Order With Boeing

By James Hookway

HANOI--Vietnamese carrier VietJet Aviation JSC said Monday that it had signed a $11.3 billion deal to buy 100 planes from Boeing Co. on the sidelines of U.S. President Barack Obama's visit to the country.

In a statement, the company said Mr. Obama and Vietnamese President Tran Dai Quang witnessed the signing of the deal. Under the agreement, VietJet will delivery of the Boeing 737 MAX 200 aircraft from 2019 to 2023. The orders will double VietJet's fleet to more than 200 by the end of 2023, the company said.

"Our investment in a fleet of B737 MAX 200 (planes) will accommodate our strategy of growing VietJet's coming international route network, including long haul flights," said VietJet President and Chief Executive Nguyen Thi Phuong Thao.

The low-cost carrier began flying 2011 and is now expanding both domestically and internationally to meet growing demand. The Vietnamese market alone has grown 20% in each of the past three years, the airline said.

Until now, VietJet had largely been an Airbus Group SE (AIR.FR) customer, usually buying A320 jets, which compete with the Boeing 737 MAX 200 planes.

Write to James Hookway at [e-mail]

(END) Dow Jones Newswires

May 23, 2016 01:24 ET (05:24 GMT)

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