News
Vietnam defies market and places new order for 40 Airbus jets
September 9th 2016
What a week it’s been for Vietnamese aviation. On Tuesday, the nation’s three largest airlines – Vietnam Airlines, VietJet Air and Jetstar Pacific – ordered 40 new Airbus aircraft during a visit to the country by French president, Francois Hollande, for an estimated $6.46 billion at list prices. Read More »
Flag carrier, Vietnam Airlines, signed a Memorandum of Understanding for ten more A350-900s. The SkyTeam member airline has four A350s in service, with another ten due from a previous order.
“The intention to acquire these additional aircraft reflects our excellent experience with the A350 since it entered service last year,” said Duong Tri Thanh, president and CEO of Vietnam Airlines, who added the XWB would enable the carrier to launch nonstop services between Hanoi and Ho Chi Minh City to the U.S. West Coast, particularly to Los Angeles. “The start of non-stop trans-Pacific services with the A350 is another example of the commitment we have at Vietnam Airlines to strengthen our position as one of the world’s leading international carriers,” Duong said.
The Hanoi-headquartered airline flies its A350s between Hanoi, Ho Chi Minh, Seoul, Tokyo and Paris. It also operates seven B787-9s, with another ten due for delivery to 2018.
The second Tuesday order came from fast-growing budget carrier, VietJet Air. The privately-run airline, under the leadership of reportedly Southeast Asia’s first self-made billionaire, Nguyen Thi Phuong Thao, placed orders for ten additional A321ceos and ten A321neos for delivery from 2017 to 2020.
VietJet operates 37 A320Family aircraft and has made firm orders for 38 A321s, 42 A320s and 100 B737 MAX 200 aircraft.
VietJet’s Thai offshoot, Thai VietJet Air, launched commercial domestic operations in December 2014. The Don Mueang-based LCC this week launched three routes – Bangkok-Chiang Mai, Bangkok-Phuket and Phuket-Chiang Rai. Thai VietJet flies internationally from Bangkok to Hanoi and Ho Chi Minh and will add a three times a week A320 service from Bangkok to Haiphong from November 9.
Thai VietJet is expected to be allotted a portion of VietJet’s existing aircraft orders. The carrier began as a joint-venture between Vietnam’s VietJet Air (49%) and Kan Air president, Somphong Sooksanguan (51%). Sooksanguan sold down his stake to unnamed local investors, leaving him with 10%.
VietJet and Airbus also finalised an agreement for the manufacturer to provide training services for flight crew and maintenance personnel at the airline’s new facility in Ho Chi Minh, where Airbus will oversee courses at the facility identical to those offered by the manufacturer’s training centres.
The third Airbus endorsement from Vietnam came from Jetstar Pacific. The Ho Chi Minh-based LCC this week finalised a purchase agreement for ten A320ceos. The contract follows an MOU announced earlier this year and marked the first direct purchase of the airline from Airbus.
“These new aircraft will be used primarily to expand our international network from Vietnam as part of the wider Jetstar Group. As competition grows in Vietnam, we believe that the A320 and our value-based quality service will place us well to attract a growing share of the market,” said Le Hong Ha, Jetstar Pacific’s CEO.
Jetstar Pacific is a joint venture between Vietnam Airlines (70%) and the Qantas Group (30%). The airline currently operates twelve leased A320ceos.
