VietJet Considers Major Airbus Order as EADSF Plans Expansion

VietJet Considers Major Airbus Order Amid Ambitious Expansion Plans

VietJet’s Fleet Expansion Strategy

VietJet Aviation is reportedly engaged in advanced negotiations to acquire approximately 100 additional narrow-body aircraft from Airbus, with a potential agreement expected to be finalized at the forthcoming Paris Air Show. The Vietnamese low-cost carrier is particularly focused on expanding its fleet with more A321neo models, aligning with a broader strategy to enhance its regional and international footprint. This initiative reflects VietJet’s intent to capitalize on the rising demand for air travel across Southeast Asia, positioning itself to better compete with other budget airlines in the region.

While analysts have welcomed the news, emphasizing the strategic importance of fleet growth in supporting VietJet’s international ambitions, the airline faces several challenges. Fluctuating fuel prices, economic uncertainties, and competitive pressures—including rival fleet expansions and fare adjustments—pose risks that could affect the success of its expansion plans.

Airbus’s Strong Start to 2025

For Airbus, a potential order from VietJet would contribute to a robust start to 2025. The European aerospace manufacturer delivered 136 commercial aircraft in the first quarter, demonstrating steady progress in increasing production despite ongoing supply chain difficulties. Airbus reported revenues of EUR 13.5 billion for Q1 2025, marking a 6% year-on-year increase, with adjusted EBIT remaining stable at EUR 0.6 billion. Net income reached EUR 4.8 billion, while adjusted earnings per share stood at EUR 0.67.

The company’s commercial aircraft division recorded 280 gross orders during the quarter, comprising 233 narrow-body and 47 wide-body jets. After accounting for 76 cancellations, net orders totaled 204, contributing to a record backlog of 8,726 aircraft. This backlog underscores sustained demand across Airbus’s product range. Additionally, the Helicopters division experienced significant growth, with net orders rising to 100 from 63 in the same period last year. In the Defence and Space segment, Airbus secured EUR 2.6 billion in new orders for the quarter.

Despite these positive developments, Airbus continues to face industry challenges, including a negative free cash flow before customer financing of EUR 0.3 billion and persistent supply chain pressures. The company maintained a net cash position of EUR 11 billion and overall liquidity of approximately EUR 35 billion as of the end of March. Recent agreements, such as the definitive deal with Spirit AeroSystems, are intended to enhance stability for key programs including the A350 and A220.

Outlook Ahead of the Paris Air Show

As VietJet deliberates its options and Airbus sustains its momentum in a competitive aerospace market, industry observers are closely monitoring the upcoming Paris Air Show. A finalized order at the event could represent a significant milestone for both companies, signaling a strengthened partnership and a notable development in the evolving landscape of global aviation.