Boeing and VietJet ink $11.3B U.S. aircraft deal

Boeing (BA) and VietJet on Monday finalized an $11.3 billion order for the Vietnamese airline to buy 100 of the U.S. aircraft manufacturing giant's jets, the largest purchase of its kind in Vietnam aviation history.

Signed in conjunction with President Obama's visit to Vietnam, the deal provides a financial boost to Boeing, which in January said it would cut production of its widebody 747-8 jet program amid weaker demand in the air cargo sector. The pact also signals VietJet's plans to expand in Asia's growing tourism and travel market.

Boeing shares closed 0.15% higher at $127.58 Monday.

The Chicago-based aircraft manufacturer said it would deliver the single-aisle 737 MAX 200 jets from 2019 through 2023. The purchases will enable Vietjet to increase its fleet to more than 200 aircraft, the companies said.

"Incorporating the latest design and technology features, the highly efficient 737 MAX 200 will provide VietJet's growing network with market-leading economics, a superior passenger experience and contribute significantly to their future success," Boeing Commercial Airplanes President and CEO Ray Conner said in a statement about the deal finalization.

Madam Nguyễn Thị Phương Thảo, VietJet's CEO, said in an official statement that the investment would "accommodate our strategy of growing Vietjet's coming international route network, including long haul flights."

Additionally, she said the deal would speed the development of the Asian nation's aviation industry, as well as contribute to "increasing bilateral trade between the U.S. and Vietnam."

The sale agreement comes more than 40 years after the end of the Vietnam War, a decades-long Cold War struggle in which more than 3 million people died, including 58,000 Americans. The U.S. and Vietnam have moved toward closer diplomatic and business ties in recent years amid a fractious relationship between the Asian nation and neighboring giant China.

Follow Paste BN reporter Kevin McCoy on Twitter: @kmccoynyc