VietJetAir (VJ) is poised to finalize a significant $200 million aircraft financing deal with US-based investment firm KKR (Kohlberg Kravis Roberts), according to Reuters. The agreement is expected to be signed this week in Washington D.C., during an event that will also see the attendance of Boeing executives.
The Vietnamese carrier holds a longstanding order for 150 Boeing narrowbody aircraft, including fifty B737-8s and 100 B737-8-200s, a deal that dates back to 2016 but has been dormant for some time. It remains unclear whether the KKR financing will be used to fulfill this existing order or support the purchase of additional aircraft, as VietJet is also reportedly considering adding twenty B787s to its fleet.
VietJetAir CEO Dinh Viet Phuong confirmed during a meeting in Hanoi on April 4 that the airline expects the delivery of ten B737-8 aircraft in 2025, with a total value of approximately $1.8 billion.
While KKR has declined to comment on the deal, VietJet has not responded to requests for further details.
The potential Boeing deal comes amid a trade imbalance between the US and Vietnam, with the US government recently imposing a 46% tariff on Vietnamese imports. Despite a substantial $123.5 billion trade surplus between the two nations, new aircraft orders from VietJet and other Vietnamese carriers could help reduce the surplus, possibly providing Vietnam with leverage to negotiate a tariff reduction.
In addition to its Boeing orders, VietJet also has a substantial order with Airbus, including seventy A321-200NX, twenty A321-200NY(XLR)s, and twenty A330-900Ns, further diversifying its fleet expansion strategy.
Related Topics:
