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Vietnam Airlines To Request Proposals For 50 Narrowbody Jets In 2025

admin Nov 27, 2024 Uncategorized 0 Comment

Vietnam Airlines is set to launch a tender for 50 narrowbody aircraft in 2025 as part of its ambitious plan to expand its fleet to 170 aircraft by 2035. This move aligns with the airline’s broader strategy to meet rising passenger demand and strengthen its position in the competitive Southeast Asian market.

Photo: Vietnam Airlines

Open competition for suppliers

Speaking on the sidelines of the Association of Asia-Pacific Airlines (AAPA) event in Brunei, Vietnam Airlines CEO Le Hong Ha emphasized that the tender process would be open to all major manufacturers, including Airbus, Boeing, and potentially Comac. “In Vietnam, we have to go through the bidding process, and the door is still open for everyone,” Ha stated. While he acknowledged Boeing’s “very good offer,” he confirmed that the final decision would depend on proposals submitted and subsequent board approval. Ha did not indicate when the second tender will be called.

Vietnam Airlines currently operates a narrowbody fleet exclusively composed of Airbus aircraft. However, the upcoming tender presents a significant opportunity for competitors to secure a foothold in the airline’s fleet. Boeing has positioned itself as a strong contender, following a memorandum of understanding signed last year for 50 Boeing 737 Max jets. Although non-binding, the agreement has kept Boeing in close contention for this potential order.

Photo: Boeing

Vietnam Airlines celebrated the arrival of its first Airbus A320neo, registration VN-A513, in Hanoi on July 7. This marks the first of three A320neos joining its fleet in 2024, enhancing fuel efficiency by 16% and supporting growing passenger demand during the summer season.

China’s COMAC is also seeking to enter Vietnam’s aviation market with its Comac C919 aircraft. During a recent meeting with Vietnamese Prime Minister Pham Minh Chinh, COMAC’s Deputy General Manager Wei Yingbiao highlighted Vietnam’s potential. COMAC has expressed interest in introducing its aircraft to Vietnam Airlines and is already engaged in discussions with Vietjet, Vietnam’s largest private airline. The growing ties between Vietnam and China, underscored by recent diplomatic exchanges, could influence the consideration of COMAC as a viable supplier.

Photo: VGP

Strategic implications for growth

The planned fleet expansion reflects Vietnam Airlines’ commitment to maintaining its competitive edge in a rapidly growing market. Narrowbody aircraft form the backbone of the carrier’s operations, serving domestic and regional routes across Asia. By issuing an open tender, the airline aims to secure competitive pricing, optimize operational efficiency, and explore options for fleet diversification.

Prime Minister Pham Minh Chinh’s recent support for increased cooperation with COMAC highlights the strategic importance of aviation in strengthening Vietnam’s ties with key global partners. COMAC’s C919 could help diversify Vietnam Airlines’ fleet and reduce reliance on traditional suppliers. However, Airbus and Boeing remain dominant players, and their established track records with Vietnam Airlines will likely ensure a highly competitive bidding process.

The tender also comes at a time when Vietnam Airlines is recovering from the pandemic and gearing up for sustained growth. With passenger demand in Southeast Asia rebounding rapidly, the airline’s ability to expand and modernize its fleet is crucial to staying ahead of regional competitors like Vietjet and Bamboo Airways.

Photo: Seven43 | Shutterstock

With its ambitious expansion plans, Vietnam Airlines is positioning itself as a key player in the Southeast Asian aviation market. The tender marks a pivotal moment not only for the airline but also for manufacturers looking to secure or expand their presence in this dynamic and fast-growing region.

Source: Simple Flying

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