Airbus has struck a deal with Vietnamese budget airline Vietjet for up to 150 single-aisle jets at the Paris Air Show as the aviation industry’s hopes to return to a tariff-free trade agreement were given a boost by United States Transportation Secretary Sean Duffy.
The French planemaker announced the deal on Tuesday.
Airbus is the main supplier of jets to Vietnam, accounting for 86 percent of the planes currently operated by Vietnamese airlines. The export-dependent Southeast Asian country is under pressure from Washington to buy more US goods.
Vietjet Chairwoman Nguyen Thi Phuong Thao said the scale of the airline’s orders was backed by plans to develop a major aviation hub in Vietnam, which Airbus says has seen its aviation market grow by 7.5 percent a year.
A deal for 150 A321neos could be worth around $9.4bn, according to estimated prices provided by Cirium Ascend.
The agreement was the latest in a flurry of business announced by Airbus at the world’s biggest aviation trade fair in Paris, France.
Airbus has made gains against its chief competitor Boeing as airlines reconsider purchases of the US-made jets amid ongoing tariff threats in recent months. In May, budget airline Ryanair threatened to pull orders of Boeing aircraft amid tariff threats.
Duffy said he wanted civil aviation to return to a 1979 zero-tariff trade agreement, in one of the clearest signs yet that the administration of US President Donald Trump might favour such a move. However, Duffy added that while the White House was aware that the US is a net exporter in aerospace, it was also dealing with a complex tariff situation.
“Now, again, you look at what free trade has done for aviation. It’s been remarkable for them. It’s a great space of net exporters,” Duffy said. “And so the White House understands that, but if you go over there and you see the moving parts of what they’re dealing with, it is pretty intense and it’s a lot.”
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