- Deal may be signed in presence of visiting French president
- Vietnam’s only private airline expanding in market growing 20%
Airbus Group SE is in advanced talks with Vietnam’s VietJet Aviation Joint Stock Co. for a multi-billion dollar single-aisle jet order, a person with direct knowledge of the matter said.
The deal is likely to be announced as early as Tuesday in the presence of French President Francois Hollande, who is currently visiting the Southeast Asian country, the person said, asking not to be identified as the matter still isn’t public. Airbus said the manufacturer doesn’t comment on discussions it may or may not be having with customers.
Late last year at the Dubai Airshow, the carrier agreed to buy 30 Airbus A321 planes in a deal worth $3.6 billion at list prices.
The low-cost carrier started operations in December of 2011, and is seeking to expand in a market that’s grown 20 percent annually in the last three years, according to the airline. In May, the country’s only private airline said it would buy 100 Boeing 737-Max 200 jets in an order worth $11.3 billion when U.S. President Barack Obama visited Vietnam.
VietJet operates more than 250 flights a day with 50 routes in Vietnam and across the region to countries such as Thailand, Singapore, South Korea, Taiwan, China, Myanmar and Malaysia. The airline will probably surpass national carrier Vietnam Airlines as the nation’s biggest domestic carrier this year, according to CAPA Centre for Aviation.
Vietnam is expected to rank among the world’s 10 fastest-growing aviation markets in the next two decades, according to the International Air Transport Association.