Vietjet Air, the Vietnamese private budget carrier, is gearing up for significant growth and international expansion plans. In a strategic move, the airline has announced a groundbreaking agreement with Boeing to transfer up to 50 Boeing 737 aircraft to its subsidiary, Thai Vietjet Air, based in Thailand.

This move is pivotal as Vietjet Air aims to enhance aviation and tourism connectivity not just between Thailand and Vietnam, but also with other countries in the region. This decision follows a recent initiative to establish a new subsidiary in Kazakhstan, showcasing the airline's ambitious regional expansion strategy.

Under the agreement, Vietjet Air will assign 50 aircraft from its existing order of 200 Boeing 737s to Thai Vietjet Air, with the first deliveries expected to commence in October 2025. This expansion into Thailand will position Vietjet Air in direct competition with other major low-cost carriers in Asia such as Air Asia Thailand, Nok Air, and Thailand's national carrier, Thai Airways.

Vietjet Air's journey with Boeing dates back to 2016 when the initial order for the Boeing 737 MAX was placed during a visit to Vietnam by former US President Barack Obama. Subsequently, at the Farnborough Air Show in 2018, an MoU was signed for an additional 100 aircraft, solidifying the airline's commitment to expanding its fleet.

In a recent financial agreement with AV AirFinance, Vietjet Air secured $300 million to finance the new Boeing fleet, forming part of a broader series of financing deals totaling over $4 billion with leading US financial institutions. These commitments are geared towards supporting Vietjet Air's plan to introduce nearly 300 aircraft between 2025 and 2027.

Key figures like Vietnam’s Prime Minister Pham Minh Chinh and Thailand’s Prime Minister Paetongtarn Shinawatra were present during the signing ceremony of the latest deal that aimed to expand Boeing 737 operations in Vietnam and Thailand.

Nguyen Thi Phuong Thao, the Chairwoman of Vietjet Air, emphasized the airline's commitment to sustainable aviation development with the transfer of modern Boeing 737 MAX 8 aircraft to Thai Vietjet Air. This move aligns with their 'Three Connects' Strategy focusing on enhancing connectivity between supply chains, businesses, and localities of the two countries.

Boeing's President of Southeast Asia, Penny Burtt, expressed delight in partnering with Vietjet Air and Thai Vietjet Air to drive economic development in the region. The collaborative effort aims to connect communities and pave the way for a prosperous future in Vietnam and Southeast Asia.

With plans to provide comprehensive technical support, including training for pilots, maintenance crews, and engineers, Boeing will ensure the safe and efficient operation of Thai Vietjet Air's new fleet in Thailand. This milestone agreement marks a new chapter in the effective cooperation between Vietnamese, Thai, and US enterprises, focusing on digital transformation and sustainable development.

Headquartered at Bangkok’s Suvarnabhumi Airport, Thai Vietjet Air presently operates 33 domestic and international routes connecting Thailand’s key economic and tourism centers with cities across various countries in the region. The airline has served over 30 million passengers to date and has been instrumental in promoting tourism, trade, and regional cooperation within ASEAN, particularly between Vietnam and Thailand.

Operating an all-Airbus fleet, Thai Vietjet Air aims to further enhance its connectivity and service quality with the new Boeing aircraft. The cooperation between Vietjet Air, Boeing, and Thailand is set to enhance travel experiences for passengers and further strengthen regional ties in the aviation industry.