Vietnam Airlines To Buy New Aircraft

Vietnam Airlines is inching closer to a landmark purchase of new aircraft, which would elevate its narrowbody fleet.

The prospective deal will see the airline now have principal approval from the government without the requirement for a state guarantee.

What remains more important for the carrier is the significance of the contract for the long term as it navigates competition and rising demand.

The contract will be for single-aisle jets, focusing on Vietnam Airlines’ narrowbody operations. Vietnam Airlines is looking to build a portfolio of commercial aircraft that can carry it into future decades.

Regarding the airline’s replacement plans, this new contract will directly replace its well-renowned A321ceo fleet, which is beginning to show signs of age and a lack of efficiency compared to current options.

Fleet data indicates that the airline still has 42 Airbus A321-200s to its name, with these aircraft averaging 13.1 years of age. Alongside a commitment to the A321neo, there remains a need to begin planning for the future.

This new commitment to single-aisle jets will likely involve 50 aircraft with the Airbus A320neo family and enhance a deal for the 737 MAX family among the options.

Vietnam Airlines already has contracts in place for the 737 MAX, so this next deal is vital to determining whether the carrier wants to seek flexibility in its fleet or stick with commonality.

Vietnam Airlines has already stated that it believes over 100 single-aisle jets will need to be in the fleet by the midway point of the next decade, and as the years progress after that, further deliveries will be required.

At this stage, the airline’s single-aisle fleet only comprises the A320 and A321 families, which have 65 units each.

Therefore, factoring in the requirement for fleet renewal and, equally, growth purchases such as what’s taking shape will be pivotal.

Vietnam Airlines’ Boeing 737 MAX Deal

In the third quarter of 2023, Vietnam Airlines announced an order for 50 Boeing 737 MAX aircraft, with the contract worth nearly USD 8 billion at list price.

The 50 units are for the most popular variant in the 737 MAX series, the 737-8 and will provide what Boeing describes as the best possible flexibility for Vietnam’s growing aviation market.

Therefore, the opportunity exists to continue its commitment to this aircraft series, whether that involves adding more 737-8s or exploring other variants within the series.

The risk involved in purchasing other variants in the MAX series to counter the capacity visible through the A321 remains that the high-capacity 737-10 remains uncertified, and Boeing’s production woes continue to be a concern with deliveries delayed.