Vietjet Secures $300 Million Financing While Eyeing Boeing 787 Order, and More
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Vietjet Finances Fleet Expansion with $300 Million Deal While Eyeing Boeing 787 Order
Vietnamese budget carrier Vietjet Air has finalized a $300 million financing agreement with AV AirFinance to support its ambitious fleet expansion strategy.
The deal, signed on April 9 in Washington D.C., strengthens Vietjet's financial position as it prepares to take delivery of its first Boeing 737 MAX aircraft in 2025 from a previous 200-plane order valued at over $24 billion.
Simultaneously, the airline is in active discussions to expand its Boeing commitments, including the potential addition of 20 wide-body Boeing 787 aircraft.
Key Points
- The $300 million agreement is part of broader aircraft financing arrangements totaling over $4 billion with U.S. financial institutions
- First deliveries from Vietjet's existing 200 Boeing 737 MAX order will begin in 2025, six years after the original deal announcement
- Reuters reports Vietjet is considering purchasing 20 wide-body Boeing 787 jets, signaling potential long-haul expansion
- The deal signing coincided with Vietnam's Deputy Prime Minister Ho Duc Phoc's U.S. visit, highlighting growing economic ties
- Vietjet's current fleet exceeds 115 aircraft with orders for more than 400 additional planes
- Beyond aircraft procurement, Vietjet maintains partnerships with major U.S. corporations including GE, Pratt & Whitney, and Honeywell totaling approximately $64 billion
What It Means
This financing deal provides critical funding for Vietjet's aggressive growth trajectory while representing a potential boost for Boeing amid its ongoing recovery efforts.
The timing is strategically significant as Vietnam works to reduce its trade surplus with the U.S. through increased American purchases.
For Vietjet, securing wide-body aircraft would enable expansion into lucrative long-haul markets, transforming the carrier from a regional budget airline into a more comprehensive global competitor.
