Vietnam’s VietJet to Sign Aircraft Finance Deal, Boost Boeing Cooperation

Key takeaways:

• Vietnamese budget airline VietJet is set to sign a $200 million aircraft finance deal with a partner of investment fund KKR.
• The deal will be signed at a meeting in Washington next week attended by Boeing, signaling closer cooperation between VietJet and the aircraft maker.
• The agreement strengthens VietJet’s relationship with Boeing, having previously ordered 200 Boeing 737 MAX aircraft worth $25 billion.

Introduction

VietJet Aviation JSC, Vietnam’s leading low-cost carrier, is poised to deepen its ties with Boeing Co. through a new aircraft finance deal and enhanced cooperation. According to an internal schedule seen by Reuters, VietJet will sign a $200 million aircraft finance agreement with a partner of investment fund KKR & Co. Inc. The deal is set to be inked at a meeting in Washington, D.C., next week, which will be attended by representatives from Boeing.

Detailed Analysis

The impending agreement signals a strengthening of VietJet’s relationship with Boeing, the world’s largest aerospace company. In 2018, VietJet signed a $12.7 billion deal with Boeing for 100 Boeing 737 MAX aircraft, including 80 737 MAX 10s and 20 737 MAX 8s.¹ The new finance deal, facilitated by a KKR partner, will support VietJet’s ambitious expansion plans and help the airline manage its growing fleet.

For retail investors, this development highlights the close partnership between VietJet and Boeing, two major players in the aviation industry. As VietJet continues to expand its operations, its reliance on Boeing’s aircraft and support services is likely to grow, potentially benefiting Boeing’s bottom line. The finance deal also underscores the involvement of prominent investment firms like KKR in the aviation sector, providing potential opportunities for investors interested in aircraft financing and leasing.

Furthermore, the meeting in Washington, D.C., attended by Boeing representatives, suggests ongoing discussions and collaboration between the two companies. This could potentially lead to future agreements, joint ventures, or strategic partnerships, further solidifying their relationship and opening up new avenues for growth and investment.

Conclusion

The upcoming $200 million aircraft finance deal between VietJet and a KKR partner, coupled with the meeting involving Boeing, underscores the deepening ties between the Vietnamese low-cost carrier and the American aerospace giant. As VietJet expands its fleet and operations, its reliance on Boeing’s aircraft and support services is likely to increase, creating potential investment opportunities for those interested in the aviation sector. Retail investors should keep a close eye on further developments in this partnership, as it could shape the future of both companies and potentially impact the broader aviation industry.

References

¹ Boeing (Jul 18, 2018). “Boeing, VietJet Sign Agreement for 100 737 MAX Airplanes”. Boeing Media Room. Retrieved [Current Date].

² Reuters (Apr 4, 2025). “Vietnam’s VietJet to sign aircraft finance deal, boost cooperation with Boeing, document says”. Reuters. Retrieved [Current Date].

³ Vietjet (Jul 8, 2015). “Vietjet collaborates with Boeing on fleet expansion plans”. Vietjet Air. Retrieved [Current Date].

⁴ Reuters. “Vietjet Aviation JSC”. Reuters. Retrieved [Current Date].