As VietJetAir (VJ, Hanoi Noi Bai International) targets VND1 trillion (USD43 million) in profits this year, ten times last year’s figure, it has resurrected its pre-pandemic deal with Boeing (BOE, Washington National) to acquire 200 B737 MAX aircraft.
The USD35 billion agreement consists of USD24.2 billion worth of aircraft orders and USD10.8 billion worth of engine MRO services. The budget carrier also claimed the deal would bring 200,000 jobs to the US labour market.
According to the ch-aviation fleets module, the order is for 106 B737-10s, sixty-six B737-8s, and twenty-eight B737-8-200s. It does not currently operate any Boeing jets, its 77-strong fleet made up of eighteen A320-200s, thirty-eight A321-200s, twelve A321-200Ns, seven A321-200NXs, and two A330-300.
It is also taking delivery of more Airbus (AIB, Toulouse Blagnac) aircraft as it awaits delivery of ninety-four more A321-200Ns, five more A321-200NX, twenty A321-200NY(XLR)s, and one more A330.
The contract with Boeing dates back to 2016 when Vietjet placed its first order with the American manufacturer for 100 B737 jets. The tally doubled three years later to include twenty additional MAX 8s and eighty more of the larger MAX 10 variant.
The reaffirmation agreement was reached in mid-May during an official visit by Prime Minister Pham Minh Chinh to the United States and the United Nations to coincide with an ASEAN-US Special Summit held in Washington D.C., VietJetAir said in a statement on May 27.
On May 29, VietJetAir issued a separate release saying it was aiming for a two-and-a-half-fold rise in revenues this year to VND32.72 trillion dong (USD1.4 billion) and VND1 trillion in profits. At its annual general meeting the previous day, shareholders had expressed concern over rising oil prices, but the carrier’s management said they remain optimistic, pledging a 100% return to pre-pandemic capacity domestically and 70% internationally. Shareholders also backed a plan to issue up to 54.1 million new shares, or 10% of the company’s free-floating stock, to professional investors.
VietJetAir President Nguyen Thi Phuong Thao also told shareholders at the meeting that the company planned to capitalise on its revenue-rich cargo business by launching an initial public offering (IPO) within the next year.
"This segment has almost no cost [and] generates only revenue," she said. "During the pandemic, the company converted passenger aircraft to freighters, along with opening more logistics services, bringing in hundreds of millions of dollars in revenue. In the future, cargo will be a key segment of VietJet. The company also plans to IPO this segment this year or early next year."
