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Vietnamese carriers sign $21 bn in aviation deals with US firms

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HANOI: Vietnamese carriers signed $21 billion in aviation deals with US firms on Wednesday as US President Donald Trump met with top leaders in Hanoi ahead of his summit with North Korea’s Kim Jong Un.


Trump has urged Hanoi to narrow its gaping trade gap with Washington as part of his “America First” clarion call, urging Vietnam to buy more made-in-USA goods.


The communist country’s aviation sector has boomed in recent years thanks to a rapidly expanding middle class with growing appetites — and budgets — for air travel.


Three of Vietnam’s top airlines signed several deals for planes, engines and maintenance contracts on Wednesday as Trump met with the country’s top leaders in Hanoi ahead of his much-anticipated second summit with Kim later on Wednesday.


Budget carrier Vietjet — famed for its bikini-clad air hostesses — signed an agreement for 100 Boeing 737 jets worth $12.7 billion, along with training and support contracts, the airline said.


“We are pleased to expand our partnership with Vietjet and to support their impressive growth with new, advanced airplanes,” Boeing CEO Kevin McAllister said in a statement from the airline.


A senior White House official said the budget carrier will also buy 215 engines made by CFM, a joint venture between America’s GE Aviation and France’s Safran Aircraft Engines.


Startup Vietnamese carrier Bamboo Airways, which made its inaugural flight only last month, will buy 10 787 Dreamliners from Boeing as it looks to grow its nascent fleet and expand its routes to international destinations.


“Vietnam and the US economic and trade relations have seen rapid expansion. Nonstop air routes between the two countries are of essence accordingly,” said Trinh Van Quyet, the chairman of FLC Group, the airline’s parent company.


Bamboo said Wednesday it wants to start flying to the US later this year or early in 2020. — AFP


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