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Vietnam Airlines opens tender for 50 narrowbody jets amid expansion plans

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Vietnam Airlines opens tender for 50 narrowbody jets amid expansion plans
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Vietnam Airlines plans to initiate a tender process for 50 narrowbody jets in 2025, aiming to expand its fleet to 170 aircraft by 2035. This strategy is designed to address increasing passenger demand and enhance the airline's competitiveness in Southeast Asia.

Speaking at the Association of Asia-Pacific Airlines event in Brunei, Vietnam Airlines CEO Le Hong Ha announced that the tender would be open to major manufacturers such as Airbus, Boeing, and possibly Comac. "In Vietnam, we have to go through the bidding process, and the door is still open for everyone," Ha stated. Although Boeing has made a "very good offer," Ha emphasized that final decisions will be based on proposals and board approval. The timing for a second tender remains unspecified.

Currently operating an Airbus-exclusive narrowbody fleet, Vietnam Airlines' new tender offers competitors a chance to gain entry into its operations. Boeing remains a strong contender due to last year's memorandum of understanding for 50 Boeing 737 Max jets. Despite being non-binding, this agreement keeps Boeing in close contention.

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China's COMAC is also vying for entry into Vietnam's aviation sector with its C919 aircraft. COMAC's Deputy General Manager Wei Yingbiao recently met with Vietnamese Prime Minister Pham Minh Chinh, discussing opportunities with Vietnam Airlines and Vietjet. Strengthening ties between Vietnam and China may influence COMAC's consideration as a supplier.

The expansion plan underscores Vietnam Airlines' focus on maintaining its market position amid rapid growth. Narrowbody aircraft are vital for domestic and regional routes across Asia. By inviting open bids, the airline seeks competitive pricing, operational efficiency optimization, and potential fleet diversification.

Prime Minister Chinh's support for collaboration with COMAC highlights aviation’s role in enhancing Vietnam’s global partnerships. While Airbus and Boeing are dominant suppliers with established relationships with Vietnam Airlines, they face stiff competition in this bidding process.

As passenger demand rebounds post-pandemic in Southeast Asia, expanding and modernizing its fleet is crucial for Vietnam Airlines to outpace regional competitors like Vietjet and Bamboo Airways. This ambitious expansion positions the airline as a key player in Southeast Asian aviation while providing manufacturers an opportunity to establish or strengthen their presence in this growing market.

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