Vietjet, the Vietnamese low-cost carrier, has officially taken delivery of its first Boeing 737 MAX aircraft. This delivery marks a significant milestone for the airline, arriving six years later than originally planned. The formal handover ceremony took place at Boeing Field, with Vietnam’s president reportedly in attendance, highlighting the importance of this event for both the airline and the aerospace manufacturer.
The arrival of the 737 MAX introduces Boeing aircraft into Vietjet's fleet for the first time. Since its founding in 2007, Vietjet has operated an all-Airbus fleet. This new addition signals a strategic shift for the carrier as it expands its operational capabilities.
Key Takeaways
- Vietjet received its first Boeing 737 MAX, six years behind schedule.
- This marks the first Boeing aircraft in Vietjet's previously all-Airbus fleet.
- The initial order for 100 MAX aircraft was placed in 2016.
- Delivery delays were caused by the global MAX grounding, the COVID-19 pandemic, and recent US tariffs.
- Vietjet plans to significantly expand its fleet with both Boeing and Airbus aircraft.
Long-Awaited Delivery for Vietjet
Vietjet initially signed an agreement with Boeing for 100 737 MAX aircraft in 2016. Deliveries were first expected to begin in 2019. However, various global and economic factors repeatedly pushed back this timeline. The first aircraft has now arrived in 2025, nine years after the initial order was placed.
The airline has a firm commitment for 100 units of the 737 MAX 8200 model. This version is known for its higher passenger density. The order also includes 20 standard MAX 8s and 80 of the stretched MAX 10 variant. This diverse order reflects Vietjet's plans for extensive fleet growth and route expansion.
Boeing's Presence in Vietnam
- Boeing has maintained commercial ties with Vietnam for three decades.
- A 1995 deal for the Boeing 767-300ER established an early connection.
- While Airbus aircraft currently dominate Vietnamese fleets, this is changing.
- Vietnam Airlines recently finalized a deal for 50 737 MAX aircraft.
Reasons for the Delays
Several significant events contributed to the prolonged delay in deliveries. The most impactful was the global grounding of the 737 MAX fleet. This followed two fatal crashes in October 2018 and March 2019. This grounding lasted for nearly two years as safety reviews and software updates were implemented.
The COVID-19 pandemic further complicated the situation, causing widespread disruptions in the aviation industry, including manufacturing and delivery schedules. More recently, tariffs imposed by the United States on Vietnam earlier this year created additional financing challenges for Vietjet, leading to further setbacks.
"The global grounding of the MAX, coupled with the pandemic and recent trade policies, created an unprecedented series of challenges for aircraft deliveries worldwide," a Boeing representative stated during a past earnings call.
Timeline of Vietjet's Boeing MAX Order
- May 2016: Vietjet announces initial order for 100 Boeing 737 MAX aircraft.
- 2018 Farnborough Air Show: Vietjet adds another 100 MAX planes to its orderbook.
- 2019: Initial deliveries expected to begin.
- 2018-2020: Global grounding of 737 MAX fleet.
- 2020-2022: COVID-19 pandemic impacts aviation industry.
- 2023: Plans to deliver first 12 planes to Thai Vietjet Air do not materialize.
- Early 2025: US tariffs on Vietnam create financing complications.
- September 2025: First Boeing 737 MAX finally delivered to Vietjet.
Strategic Fleet Expansion and Investment
Despite the delays, Vietjet's commitment to its Boeing order remains strong. The airline's investment in the US aerospace industry is projected to reach $65 billion. This figure includes the acquisition of Boeing aircraft and deals with other major US aerospace companies such as GE Aerospace, Honeywell, and Pratt & Whitney.
Earlier this year, Vietjet also secured key financing deals with US institutions. These deals are valued at over $4 billion and are aimed at supporting the airline's ongoing fleet renewal program. These financial commitments underscore Vietjet's long-term growth strategy and its partnership with US aerospace manufacturing.
Future Fleet Plans
Vietjet has substantial outstanding orders from both Airbus and Boeing, totaling approximately 400 new aircraft. This includes up to 150 Airbus A321neos. The airline also plans to expand its widebody fleet with up to 40 new A330neos. These additions are in addition to the 200 narrowbody MAX aircraft from Boeing.
Furthermore, Vietjet has a deal for 20 Boeing 787 Dreamliners in the pipeline. This diverse order portfolio positions Vietjet for rapid expansion across various market segments, from short-haul to long-haul routes. The airline aims to become a significant regional player in the coming years.
Current Vietjet Fleet Overview (as of April, before MAX delivery)
- Airbus A320-200: 17 aircraft (Average Age: 12.4 Years)
- Airbus A321-200: 36 aircraft (Average Age: 8.5 Years)
- Airbus A321neo: 36 aircraft (Average Age: 3.8 Years)
- Airbus A330-300: 8 aircraft (Average Age: 12.7 Years)
- COMAC ARJ21 (C909): 2 aircraft (Average Age: 2.7 Years, leased)
- Total Aircraft: 99
In May, Vietjet announced it would transfer 50 of its 737 MAX 8s to its Thai subsidiary, Thai Vietjet Air. The airline is also considering providing aircraft for its joint venture, Vietjet Qazaqstan, established in partnership with Qazag Air. These moves demonstrate Vietjet's strategy to leverage its new aircraft across its network of affiliates.
According to the airline's current schedule, Vietjet plans to add an impressive 300 new aircraft to its fleet between 2025 and 2027. This ambitious growth trajectory follows a successful 2024, where the Vietnamese low-cost carrier reported record revenues and passenger figures. The introduction of the Boeing 737 MAX is a crucial step in achieving these expansion goals.
