Boeing To Confirm 737 MAX Order

Vietnam Airlines is nearing the finalisation of an order for 50 Boeing 737 MAX jets, as reported by Reuters.

The Vietnam-based carrier’s purchase follows an agreement reached in 2023 for the plane, which was initially a provisional deal as part of its fleet growth ambitions.

Vietnam Airlines is currently in a position where it must emphasise transforming its fleet. As a result, there is a strong requirement for new aircraft to arrive to help build the airline.

It has been stated several times that Vietnam Airlines plans to purchase around 100 new narrow-body planes over the next decade, or at least acquire this many aircraft, including the 737 MAX.

Therefore, while the 737 MAX will fulfil part of that requirement, it does not entirely meet the airline’s desire for the continued renewal of its future fleet.

At the time of the airlines’ deal for the 737 MAX, it was worth approximately USD 8 billion at list price; however, with discounts, this figure would have been reduced considerably.

The 50 units were also for the mid-ground 737 MAX 8, which has been deemed by most to be the best possible variant available for a company like Vietnam Airlines, thanks to its flexibility.

Not Just The 737 MAX For Vietnam Airlines?

While the 737 MAX remains in focus for the future, Vietnam Airlines is not going to stop here and is also considering further aircraft purchases in the future.

At this stage, the airline’s single-aisle fleet consists of the A320 and A321 families, comprising a total of 65 units. However, many of the Airbus A321neo jets that are operational are currently on the ground.

In May, Vietnam Airlines stated that its sole focus was currently on developing this single-aisle fleet and is now also looking to replace its A321ceo fleet, which is showing signs of age and inefficiency compared to newer models.

If Vietnam Airlines wants a like-for-like replacement, it would enhance its commitment to the A320neo family, something it is currently studying.

Industry sources commented to Reuters, stating that discussions were ongoing between the Vietnamese flag carrier and Airbus regarding the possible placement of a new aircraft order for this single-aisle family.

However, the direction Vietnam Airlines heads will significantly depend on the availability of slots and whether these align with its future requirements.

While options in the 737 MAX are available, such as the 737-10, the uncertified nature and unproven features mean that the A321neo family may become the preferred option for those seeking a higher capacity single-aisle jet.

Time will tell for Vietnam Airlines. However, a lot has to be considered during what is a pivotal period of renewal.