Vietnam carrier inks $3.6bn deal to buy 30 Airbus planes
Vietnam carrier inks $3.6bn deal to buy 30 Airbus planes
Vietnam’s low-cost carrier Vietjet will add 30 Airbus A320’s to its fleet by 2020 after a large order was placed on Tuesday.
The US$3.6 billion deal was inked by Vietjet president and CEO Nguyen Thi Phuong Thao and John Leahy, chief operating officer of Airbus, during the ongoing 2015 Dubai Airshow in the United Arab Emirates.
The ordered aircraft include nine A321ceo’s and 21 A321neo’s, with delivery slated for between late 2016 and 2020, according to Airbus.
Vietjet plans to receive eight to 12 A321neo’s every year during that period, the carrier said in a press release.
The Vietjet CEO said the airline’s previous purchase plans for new aircraft “could not keep up with [its] developing demand,” so it was necessary to add more Airbus planes to its fleet.
“Today’s order for additional A321s responds to our growth strategy and to the need for additional seat capacity on both domestic and international routes,” she said.
Vietjet now operates a fleet of 29 A320-family aircraft, including three A321’s, according to Airbus.
“This additional order from the fast growing airline Vietjet confirms the success of the A320 Family as the preferred choice for airlines in the single aisle market,” Leahy said.
Vietjet is flying to 35 destinations in Vietnam and across Asia, including services to Thailand, Singapore, South Korea, Taiwan, mainland China and Myanmar.
The new plane purchases are intended to meet the carrier’s expansion to more Asian countries, according to Vietjet.
The A321 is the largest member of the best-selling single aisle A320 family, which has so far won more than 12,200 orders with over 6,700 aircraft delivered to more than 300 operators worldwide, according to Airbus.
The largest addition to the A320 family, the A320neo has longer range capability with reduced fuel consumption, maintenance costs and carbon emissions.
With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo has captured a 60 percent share of the market, according to Airbus.
Also at the 2015 Dubai Airshow on Tuesday, Vietjet signed a deal with engine manufacturer CFM International to order 15 additional CFM56-5B engines to power its newly-ordered Airbus A321 aircraft.
The agreement is valued at more than $700 million at list price, including spare engines and a long-term service agreement, the carrier said in a press release on Wednesday.
CFM International will guarantee maintenance for all CFM56-5B-powered aircraft of the airline’s current and future fleet, according to the maintenance service agreement.
CFM56-5B engines currently power 18 out of Vietjet’s 29 aircraft.
