Airbus nearing deal for 100 A321 aircraft with VietJet, sources say

Airbus is reportedly nearing a deal with VietJet for 100 A321neo aircraft, potentially valued at $6.3 billion, with an announcement anticipated at the Paris Airshow. This order would bolster Airbus's presence in Vietnam, where it already supplies 86% of the aircraft used by Vietnamese airlines, while Boeing faces pressure related to a recent crash and existing undelivered orders from VietJet.

Analysis

Airbus (AIR.PA) is reportedly on the verge of securing a significant order from VietJet (VJC.HM) for 100 A321neo single-aisle aircraft, a deal potentially valued at approximately $6.3 billion according to Cirium Ascend estimates, with an announcement anticipated at the Paris Airshow. This development underscores Airbus's strong momentum and would further solidify its dominant position in Vietnam, where its aircraft already comprise 86% of the fleet operated by Vietnamese airlines. VietJet, Vietnam's largest carrier, notably operates an almost exclusively Airbus fleet and has yet to take delivery of around 200 MAX aircraft previously ordered from Boeing (BA.N). The news contrasts with Boeing's current situation, characterized by a more subdued presence at the airshow as it navigates the investigation into a recent fatal crash of an Air India Boeing 787 and manages a backlog from prior large orders. This situation is reflected in a negative sentiment score (-0.4) for Boeing in associated data signals, while the overall market sentiment for this news is moderately positive (0.65). While this deal is a clear win for Airbus, it's noteworthy that export-dependent Vietnam faces U.S. pressure to procure more American goods, a factor that could influence future aviation procurement decisions in the region.

Key Decisions for Investors

• Investors should view this potential order as a significant positive catalyst for Airbus (AIR.PA), reinforcing its order book and market share in the strategically important Southeast Asian aviation market.
• For Boeing (BA.N), this development, coupled with its ongoing operational issues and VietJet's undelivered MAX orders, highlights persistent competitive challenges and the potential for shifts in airline fleet allegiances; monitor Boeing's ability to address these concerns and its delivery pipeline.
• Consider the broader geopolitical context, specifically U.S. trade pressure on Vietnam, as a potential long-term risk factor that could influence future aircraft purchasing patterns, potentially impacting both Airbus and Boeing in the region despite current order trends.