Vietnam Airlines Reveals Fleet Expansion Plans

May 2019

Vietnam Airlines, a state-owned enterprise, plans to expand its fleet by acquiring 50 to 75 new narrow-body aircrafts, and 10 backup engines in 2021-2025. There are several models being considered including the Airbus A320 and the Boeing 737 MAX family. Large orders will give the airline some advantages in price and post-purchase benefits such as technical maintenance. By 2025, it is estimated that the new aircrafts will contribute to 40 percent of the airlines’ pretax profit of VND 3.6 trillion (USD 154.8 million).

According to the Civil Aviation Authority of Vietnam, Vietnam Airlines’ fleet is made of 61 narrow-body and 33 wide-body aircraft which served 21.9 million passengers and accounted for 44% of the total number on all Vietnamese carriers in 2018. This number is expected to increase by 13.7% in 2019.

As Vietnam tourism is booming, other private airlines are also expanding their fleet. Bamboo Airways, which commenced operations in January 2019, wants to operate 40 aircraft in 2019, but the plan is facing concerns from Vietnam’s aviation authorities. Vietjet Air signed a contract with Boeing in this February to purchase 100 narrow-body 737 MAX airplanes for USD 12.7 billion.

(Source: VN Express)

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