Vietnamese budget airline VietJet announced on Monday that it has placed a new order with European plane manufacturer Airbus (EADSF) for 20 A330neo wide-body jets. This brings the total number of A330neos the airline has agreed to purchase up to 40 and follows a deal that was signed last year for the same number of aircraft. The latest agreement was announced during French President Emmanuel Macron’s visit to Hanoi, where he met with Vietnamese leaders in order to discuss strengthening ties between the two countries.
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Although VietJet didn’t reveal the price of the deal or the exact delivery timeline, it said that the order is part of its long-term strategy to support expansion over the next ten years. The agreement was signed by VietJet Chairwoman Nguyen Thi Phuong Thao and Airbus executive Wouter van Wersch. Thao said that the A330neo jets will help VietJet grow its international flight network, especially across the Asia-Pacific region, and may be used for future long-haul routes to Europe. Unsurprisingly, Van Wersch added that Airbus is proud to be the airline’s wide-body aircraft provider of choice.
The announcement also comes at a time when Vietnam is in the middle of trade talks with the United States, where it is trying to avoid getting hit with heavy tariffs. This has led VietJet to show interest in buying aircraft from Boeing (BA), which U.S. and Vietnamese officials have said could help reduce Vietnam’s large trade surplus with Washington. Interestingly, though, it’s worth noting that the airline previously agreed to buy 200 Boeing 737 MAX jets in a deal that was signed in 2016, but none of those planes have been delivered yet.
Is EADSF Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on EADSF stock based on 11 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average EADSF price target of $210.22 per share implies 17.9% upside potential.
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