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Jul 18, 2018

Boeing wins US$12.7B VietJet deal for narrow-body aircraft

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Boeing Co. struck a deal to sell 100 of its 737 Max narrowbody jets to Asia’s VietJet, in an agreement valued at US$12.7 billion that will make the Asian low-cost airline the biggest customer for the largest version of the aircraft.

The memorandum of understanding covers 80 of the larger 737 Max 10 planes and 20 737 Max 8s, according to a statement Wednesday. VietJet said it will use the Max 10s to satisfy surging demand on domestic routes as well as travel from Vietnam to other Asian destinations.

VietJet, Vietnam’s first privately owned airline, has been bolstering its fleet and expanding its regional network. The deal with Boeing also includes training and technical assistance in Vietnam, which will help develop aviation in the country.

“These new airplanes will fit perfectly into our growth strategy, providing the efficiency and range for VietJet to expand its route network and offer more international destinations for our customers," the airline said in a statement.