Vietnamese airlines plan to order 40 Airbus jets in deals worth an estimated $6.5 billion, the European planemaker said on Tuesday, as they expand their fleets for a small but fast-growing market.
Strong economic growth and a burgeoning middle class has increased demand for travel both domestically and abroad, spurring carriers to increase routes.
In deals announced at the start of a two-day visit to the Southeast Asian nation by French President Francois Hollande, Vietnam Airlines, the country’s flagship carrier, reached a preliminary agreement for 10 A350 planes worth $3.1 billion.
The widebody aircraft will allow the airline to expand its long-haul network, beginning with services between Ho Chi Minh City and Los Angeles
Budget airline Jetstar Pacific – controlled by Vietnam Airlines and 30 percent owned by Australia’s Qantas Airways – finalised its order for 10 A320 single-aisle planes valued at about $1 billion.
VietJet, the country’s only private airline, placed a firm order for 20 A321s – worth $2.4 billion.
via Vietnamese airlines order 40 Airbus jets worth $6.5 billion — Business | Thanh Nien Daily
About the author
Boris Sullivan is a business news editor based in Hong Kong. He has over 15 years of experience in covering the latest trends and developments in the Asian markets, as well as the global economy.