More Airbus & Boeing Orders?

Could more orders for Airbus and or Boeing aircraft be on the cards? This seems a possibility as a new airline has been launched.

Sun PhuQuoc Airways last week launched itself to the world, labelled as a resort airline for Vietnam. It aims to connect those across Phu Quoc Island right across Vietnam, but also beyond that.

The hope, thanks to the launch of the first-ever resort-type airline, is to establish the long-term strength position of the island across the region as a regional hub.

As seen with other locations around the world, if markets want to increase tourism and stimulate economic growth, the launch of a new airline or the development of an existing one is typically crucial.

Airbus will initially play an essential role in the development of Sun PhuQuoc Airways with the A321 to help launch the operations with the A321neo and A321ceo operating.

Data shows that the three A321s are VN-A279, an A321-211 which is 7 years of age, followed by VN-A280, an A321-211 at 6.9 years of age, and the newest on lease, VN-A281, an A321neo at 0.3 years of age.

The hope under current forecasting is for the company to have a fleet of 25 aircraft by the end of 2026, which would then jump to 35 by 2027 as part of efforts to grow and meet demand regionally.

Inaugural services to be operated by the Airbus aircraft with Sun PhuQuoc Airways will include service to Ho Chi Minh City, Da Nang, and Hanoi from Phu Quoc, alongside other Vietnam-based domestic connections.

However, looking into the future, this is where Airbus and Boeing would feel there’s an excellent opportunity to pounce, with the airline’s CEO Nguyen Manh Quan speaking with Bloomberg and saying that there is hope to acquire up to 100 aircraft in the next five years.

Owned by Sun Group, November will see the commencement of commercial operations with around 20 million passengers to be carried per year by the turn of the decade, which would result in revenues of USD 2 billion as well by 2030.

A Busy Period For Airbus & Boeing

The prospect of possible future aircraft purchases such as this one, as airlines look to advance their fleet, highlights what is a. busy period for planemakers such as Airbus and Boeing.

Following the COVID-19 pandemic, many airlines are now concluding the rebuilding of their operations and, as a result, are moving towards increasing growth across their operations.

With that in mind, airlines are looking to place significant orders for new aircraft where possible to secure jets sooner rather than later, some airlines in a more fortunate position than others, where they can place sizeable deals in preparation for future demand.

That rush to secure orders and therefore lock in production and associated delivery slots follows a longer wait for the delivery of new planes. Because of this surge, it has put many airlines in a rush to get in line for these new planes.

Airbus and Boeing both have healthy backlogs. Arguably, the figures of undelivered jets have not been aided by the many supply chain constraints that have forced deliveries to slow across recent years, with orders increasing.

The drive for aircraft purchases also comes not just with growth in mind, as airlines are reaching a point where they need to begin or conclude simplification efforts by reducing the number of aircraft types present to increase efficiency.

With Sun PhuQuoc Airways launching, the regional Vietnamese carrier joins one of the many in this region seeking to substantially increase its fleet in the coming years, equally now facing the challenge of securing planes.