Vietjet Aviation is expected to place an order worth $6.5bn with Airbus for 50 A321neo aircraft. Credit: Airbus SAS.

Vietnam-based airline Vietjet Aviation is expected to place an order worth $6.5bn with Airbus for 50 A321neo aircraft.

According to Reuters, the order is set to be finalised today during French Prime Minister Edouard Philippe’s visit to Vietnam’s capital Hanoi.

Part of a investment drive carried out by Vietjet, the order is expected to help Airbus increase revenues by converting provisional orders secured at this year’s Farnborough Airshow into firm ones.

Both Airbus and Vietjet have not commented on the deal.

Recently, VietJet CEO Nguyen Thi Phuong Thao was quoted by Reuters as saying that the airline intends to operate an average fleet age of only three years in order to reduce fuel and maintenance costs.

“The airline intends to operate an average fleet age of only three years in order to reduce fuel and maintenance costs.”

At the Farnborough Airshow, Vietjet signed a memorandum of understanding (MoU) with Airbus to buy an additional 50 A321neo single aisle jets.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The deal has increased the airline’s backlog of orders for the A320 Family to 129 aircraft that comprise 123 A321neo and six A321ceo planes.

The additional jets are set to help Vietjet meet the rising demand for its services on both domestic and international routes.

In Farnborough, Vietjet also signed a MoU with Boeing for 100 737 MAX jets, which are valued at more than $12.7bn at list prices and are scheduled to be delivered between 2020 and 2025.

Both the parties are currently having discussions to confirm the order of 80 737 MAX 10s and 20 737 MAX 8 jets.