Vietjet Signs US$300 Million Deal to Boost Fleet Expansion

MUMBAI:
Vietjet Air, Vietnam’s leading new-age airline, and AV AirFinance have signed a financial agreement totaling US$300 million. The signing ceremony took place in the presence of Vietnam’s Deputy Prime Minister Ho Duc Phoc and other senior Vietnamese government officials, as part of an official mission aimed at strengthening U.S.–Vietnam economic and trade relations.

The agreement is part of a broader series of aircraft financing deals totaling over US$4 billion that Vietjet has secured with leading U.S. financial institutions. These commitments aim to support Vietjet’s new fleet development plan, with the projected delivery of nearly 300 aircraft between 2025 and 2027.

Stephen Murphy, CEO of AV AirFinance, said: “We are delighted to be a long-term strategic partner of Vietjet. This new commitment reflects our strong relationship and willingness to support Vietjet’s resurgent growth in the Asia-Pacific region via new generation aircraft.”

In 2025, Vietjet will begin taking delivery of the first batch of Boeing 737 MAX aircraft from its landmark order of 200 aircraft, valued at over US$24 billion. The deal was originally announced on February 27, 2019, in Vietnam, in the presence of U.S. President Donald Trump. As part of its global growth strategy, the airline is currently in discussions to further expand this historic order.

In addition to its collaboration with Boeing, Vietjet has established long-term strategic partnerships with several major U.S. corporations, including GE, Pratt & Whitney, and Honeywell, with total contract values reaching approximately US$50 billion. Ongoing negotiations are expected to add a further US$14 billion. Notably, Vietjet’s engine and technical service agreements with GE and Pratt & Whitney alone now exceed a combined value of US$10 billion. The airline is also deepening its technology partnerships with leading U.S. firms such as Microsoft, Apple, and Google, while exploring collaboration with SpaceX to integrate advanced technologies across its fleet. These high-value contracts are poised to contribute significantly to reducing the trade imbalance between Vietnam and the United States in the near future.

Dr. Nguyen Thi Phuong Thao, Chairwoman of Vietjet, congratulated the signing event and affirmed: “I am steadfast in my commitment to working tirelessly and fostering global partnerships that help bridge cultures, economies, and technologies between Vietnam, the United States, and the wider world.”

With a strategic focus on developing a modern fleet and a global flight network, Vietjet currently operates a fleet of over 115 new, fuel-efficient aircraft, with more than 400 additional aircraft on order. It has been solidifying its position as the airline with the most extensive flight network between India and Vietnam, operating 10 direct routes with 78 flights per week. This network connects New Delhi, Mumbai, Ahmedabad, Kochi, Hyderabad, and Bengaluru, to key Vietnamese hubs—Ho Chi Minh City, Hanoi and Da Nang. Indian travellers can also take advantage of Vietjet’s international connections to popular destinations, including Bali, Kuala Lumpur, Singapore or major cities in Australia and Northeast Asia.

AV AirFinance was established by a team of experienced industry professionals together with KKR and focuses on arranging financing for commercial aircraft to airlines, lessors, cargo operators and investors.