HCMC – Vietnamese budget airline Vietjet has signed a US$300-million financing agreement with AV AirFinance in the United States to support its planned fleet expansion, local media reported.
The signing ceremony was witnessed by Vietnam’s Deputy Prime Minister Ho Duc Phoc, as part of his ongoing working trip to the U.S.
The deal with AV AirFinance is part of the US$4-billion financing arrangements that Vietjet has secured with leading U.S. partners. These agreements are intended to support the airline’s fleet development plan, which includes the delivery of nearly 300 new aircraft expected between 2025 and 2027.
Vietjet is set to take delivery of the first Boeing 737 Max aircraft in 2025 from its order of 200 jets worth over US$24 billion, which was announced in Vietnam on February 27, 2019, in the presence of U.S. President Donald Trump.
The airline is also currently in negotiations to expand this order as part of its global growth strategy.
Along with Boeing, Vietjet has formed strategic partnerships with several leading U.S. corporations such as GE, Pratt & Whitney, and Honeywell, with total contract value nearing US$50 billion.
The airline is also engaged in advanced negotiations on additional projects worth around US$14 billion. Specifically, its collaborations with GE and Pratt & Whitney in engine supply and technical services have already reached a scale of over US$10 billion.
Vietjet is also expanding its partnerships with tech corporations, such as Microsoft, Apple and Google, and is in talks with SpaceX to develop tech-based services across its entire fleet.
These upcoming agreements are expected to help narrow the trade imbalance between Vietnam and the U.S. in the near future.
