Vietjet to Buy 20 A330-900s for $5.9B

Vietnam’s Vietjet, led by billionaire Nguyen Thi Phuong Thao, is set to make a significant expansion into long-haul destinations by acquiring wide-bodied jets for the first time. Airbus has confirmed that Vietjet has signed a memorandum of understanding to purchase 20 A330-900 wide-body aircraft, which will replace the carrier’s current fleet of leased A330-300s.

Although the contract value was not disclosed, based on Airbus’s 2018 price list, the order could be valued at around $5.9 billion. The move marks a strategic shift for Vietjet as it seeks to modernize its fleet. Vietjet CEO Dinh Viet Phuong stated that the A330neo aircraft would “comprehensively modernize Vietjet’s fleet.”

The memorandum was signed at the Singapore Airshow, where Vietjet also announced its selection of U.S.-based Pratt & Whitney to power 19 Airbus A321neo aircraft. Vietjet currently operates a fleet of 24 A321neos and has committed to acquiring a total of 87 of these aircraft.

Last year, Vietjet made headlines with a $25 billion deal with Boeing for the delivery of 200 737 MAX aircraft over the next five years, with 12 expected to be received this year. The airline had a fleet of 105 aircraft as of last year.

Vietjet’s passenger numbers have been on the rise, with 25.3 million passengers flown last year, a 23% increase from the previous year. To accommodate this growth, the airline added 33 new routes last year, bringing the total to 125. Notable new routes include Ho Chi Minh-Shanghai and Hanoi-Hong Kong. The airline reported revenue of 53.6 trillion Vietnamese dong ($2.1 billion) last year, a 62% increase from 2022.

Nguyen Thi Phuong Thao, with a net worth of $2.4 billion, is ranked 1,334th in the world. She founded Vietjet in 2011, gaining attention with advertisements featuring flight attendants in bikinis. In 2017, the company was listed on the Ho Chi Minh Stock Exchange, raising $170 million. Thao also has investments in banking and real estate, including three beach resorts.