Vietnam Air, Boeing near USD 7.5 billion deal for 50 737 max planes – ET TravelWorld

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<p>Boeing 737 MAX</p>
Boeing 737 MAX

Vietnam Airlines is expected to sign an initial agreement to buy about 50 Boeing 737 Max jets in a deal valued at about USD 7.5 billion, a person familiar with the talks told Reuters.Wording of the impending deal, which confirms a Reuters report from last week, comes as US President Joe Biden visits Hanoi to boost ties with the former foe.

Boeing and Vietnam Airlines did not immediately respond to requests for comment.

The deal would be worth up to USD 7 billion at list prices, and usually companies that buy in bulk discounts, but the person familiar with the talks did not comment on this.

The FAA is considering mandating technology to warn pilots before they land on the wrong runway

The FAA asked an internal advisory panel to make recommendations on how to require systems that would alert pilots if they are lined up to land on the wrong runway or a taxiway, or when the runway they have chosen is too short. Planes typically have GPS-based systems that warn pilots if they are in danger of hitting the ground or an obstacle.

Boeing has a deal with Vietnam Airlines’ rival VietJet for the sale of 200 of its 737 MAX planes.

Vietnam was the world’s fifth fastest-growing aviation market in 2022 when it lifted Covid-19 travel restrictions, according to the International Air Transport Association (IATA), which predicts the country will serve 150 million air transport passengers by 2035.

Boeing 737 Max jets were grounded worldwide for months after two fatal crashes in Indonesia and Ethiopia in 2018 and 2019. The planes returned to service from the end of 2020.

Vietnam Airlines recorded a net loss of 1.3 trillion dong (USD 53.96 million) in the second quarter of this year, its 14th quarter in the red, its financial statements showed. The carrier has said the losses were due to rising fuel prices and other financial risk factors.

Boeing has also been in talks with Vietnamese authorities, together with other US defense companies, for the possible sale of military equipment, including drones and helicopters.

Arlington, Virginia based Boeing has six suppliers in Vietnam and is working to increase their capabilities.

  • Published On Sep 11, 2023 at 08:00 AM IST

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