VietJet boosts cooperation with US firms

General Secretary of the Communist Party of Vietnam Nguyen Phu Trong witnessed the MOC signing ceremony of Vietjet and Boeing

VietJet and Boeing signed a memorandum of collaboration (MOC) paving the way for both sides to research and develop future business opportunities, during a ceremony at the U.S. Chamber of Commerce in Washington D.C on July 8.

Nguyen Thanh Hung, vice chairman of Vietjet’s Board of Management, and Stanley Roth, vice president of Boeing International Government Relations, signed the landmark collaboration deal in the presence of His Excellency Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam, in his first official visit to the United States to mark the 20th anniversary of the normalisation of relations between the United States and Vietnam.

The MOC calls for both parties to initiate diligent and cooperative efforts to support the goal of expanding VietJet’s fleet with Boeing commercial jet aircraft and related goods and services. Boeing and VietJet are also committed to working together in good faith with a view to the potential acquisition of Boeing aircraft while holding further discussions in areas including but not limited to fleet planning, commercial terms, flight and maintenance training, marketing and branding, and financing.

“Our continuous investment in new and modern fleet is crucial to VietJet’s development strategies in the Asia Pacific. We are honored and delighted to sign the MOC which is expected to bring more business opportunities to both VietJet and Boeing in the coming time,” said Hung.

VietJet has recorded impressive growth since launching operations in late 2011 and its previous purchasing plans for 107 aircraft will not keep up with its developing demand. The airline currently operates a fleet of 25 A321 and A320 aircraft and plans to add four more aircraft by the end of 2015. During the recent Paris Air Show 2015, VietJet also ordered six more additional A321 aircraft for delivery during 2017.

During the General Secretary Nguyen Phu Trong’s visit to the US, VietJet also inked a memorandum of understanding (MOU) with JPMorgan Chase in order to pave the way for the US bank to advise and arrange financing in ECA supported aircraft purchase and lease for VietJet’s current and future contracts.

Furthermore, the carrier also signed an MOU with Honeywell Aerospace to select Honeywell’s Auxiliary Power Units (APU) and Avionics as a source for VietJet’s future fleet valued at $56 million. Accordingly, the MOU calls for both parties to explore more opportunities for VietJet to select and install Honeywell’s APU and avionics suite for its new aircraft to be delivered from now until 2017.