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Vietnamese airline to lease up to 10 C909 jets in boost for Chinese aircraft maker
🇨🇳 China /Economy & Trade

Vietnamese airline to lease up to 10 C909 jets in boost for Chinese aircraft maker

From South China Morning Post · (6d ago) English Positive tone

Summarized and contextualized by DistantNews.

TLDR

  • Vietnamese budget airline VietJet Air has agreed to lease up to 10 Chinese-made C909 regional passenger jets from SPDB Financial Leasing.
  • This deal aims to support Comac's ambition to compete with established aviation giants Airbus and Boeing in the global market.
  • The agreement was made during Vietnamese President To Lam's state visit to China, with both nations expressing support for further cooperation in civil aviation.

Hanoi – In a significant move for both Vietnam's aviation sector and China's aerospace ambitions, budget carrier VietJet Air has announced an agreement to lease up to 10 Chinese-made C909 regional passenger jets. This deal, facilitated by SPDB Financial Leasing, a subsidiary of Shanghai Pudong Development Bank, marks a crucial step for the Commercial Aircraft Corporation of China (Comac) in its quest to challenge the dominance of Airbus and Boeing on the international stage.

Driven by its vision to become a multinational aviation group, VietJet is expanding its international flight network and investing in a modern fleet.

— VietJet AirStating the airline's strategic goals related to fleet expansion.

The agreement was finalized during a state visit to Beijing by Vietnamese President To Lam, who met with Chinese President Xi Jinping. The presence of Vietnam's Deputy Prime Minister, Phan Van Giang, at the lease-signing event further underscored the strategic importance of this collaboration. Both Chinese and Vietnamese officials have publicly expressed strong support for enhanced cooperation in civil aviation, welcoming Vietnamese airlines to adopt Chinese-manufactured aircraft.

plays an important role in structuring aircraft leasing and financing solutions

— VietJet AirAcknowledging the role of SPDB Financial Leasing in the deal.

This development is particularly noteworthy given Comac's relatively small market share outside of China. The C909's entry into VietJet's fleet, even on a lease basis, signifies a tangible expansion into overseas markets. Political scientist Nguyen Thanh Trung from Fulbright University in Vietnam commented on the significance of the number of aircraft involved, suggesting that "the number of 10 planes may tell a lot," hinting at potential future expansions and deeper ties.

means a lot

— Nguyen Thanh TrungCommenting on the significance of the aircraft deal.

For VietJet Air, the move aligns with its vision of becoming a multinational aviation group, expanding its international network and modernizing its fleet. The involvement of a Chinese financial institution in structuring the leasing and financing solutions highlights the integrated nature of this partnership. This deal not only provides Comac with a vital international customer but also positions Vietnam as a key player in the growing market for Chinese commercial aircraft, potentially reshaping regional air travel dynamics.

The number of 10 planes may tell a lot.

— Nguyen Thanh TrungInterpreting the potential implications of the lease agreement.
DistantNews Editorial

Originally published by South China Morning Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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