Vietnam’s VietJet to close $6.1b deal with Airbus

viet-jet-airVietnam’s first private airline, VietJetAir, said on January 29 that it was close to finalising a $6.1 billion order for 62 Airbus aircraft. The deal is expected to be signed at the Singapore Airshow in February, VietJetAir’s managing director Luu Duc Khanh said.

VietJetAir and Airbus signed a letter of intent in September for the purchase of 62 A320 medium-haul aircraft worth $6.1 billion at list prices, and for options for another 30.

The low-cost carrier began operating in late 2011 and is the first private airline in Vietnam to offer domestic and international flights. It currently serves 11 cities in Vietnam plus Bangkok. In 2013, the carrier took delivery of a ninth leased A320.

The letter of intent was for 14 of the current single-aisle A320 model and 42 of the new A320Neo due to enter into service in 2015, which promises airlines considerably better fuel efficiency. Another six planes will be the longer A321 version, which can be configured with up to 220 seats.

While VietJetAir has a good foothold in the Vietnamese market, analysts say it is facing stiff competition in the low-cost segment in Southeast Asia, behind Malaysia’s AirAsia, Lion Air of Indonesia, Singapore’s Tiger Airways and Jetstar of Australia.



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Vietnam's first private airline, VietJetAir, said on January 29 that it was close to finalising a $6.1 billion order for 62 Airbus aircraft. The deal is expected to be signed at the Singapore Airshow in February, VietJetAir's managing director Luu Duc Khanh said. VietJetAir and Airbus signed a letter of intent in September for the purchase of 62 A320 medium-haul aircraft worth $6.1 billion at list prices, and for options for another 30. The low-cost carrier began operating in late 2011 and is the first private airline in Vietnam to offer domestic and international flights. It currently serves 11 cities...

viet-jet-airVietnam’s first private airline, VietJetAir, said on January 29 that it was close to finalising a $6.1 billion order for 62 Airbus aircraft. The deal is expected to be signed at the Singapore Airshow in February, VietJetAir’s managing director Luu Duc Khanh said.

VietJetAir and Airbus signed a letter of intent in September for the purchase of 62 A320 medium-haul aircraft worth $6.1 billion at list prices, and for options for another 30.

The low-cost carrier began operating in late 2011 and is the first private airline in Vietnam to offer domestic and international flights. It currently serves 11 cities in Vietnam plus Bangkok. In 2013, the carrier took delivery of a ninth leased A320.

The letter of intent was for 14 of the current single-aisle A320 model and 42 of the new A320Neo due to enter into service in 2015, which promises airlines considerably better fuel efficiency. Another six planes will be the longer A321 version, which can be configured with up to 220 seats.

While VietJetAir has a good foothold in the Vietnamese market, analysts say it is facing stiff competition in the low-cost segment in Southeast Asia, behind Malaysia’s AirAsia, Lion Air of Indonesia, Singapore’s Tiger Airways and Jetstar of Australia.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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