The narrow-body aircraft will have a capacity of 170 seats and consume 15 percent less fuel compared to older generation aircraft, the airline said in a statement.

This will be the first of 50 aircraft for which the airline has signed a purchase deal with Airbus. It currently operates 10 hired aircraft, aims to increase it to 30 this year and targets a fleet of 100 by 2024.

Bamboo Airways has also signed an agreement to receive next year, two of the 10 wide-body Boeing 787-9 Dreamliner aircraft it has ordered.

The airline began its first flights in January and has completed 14,000 flights since with an average occupancy rate of 90 percent.

It currently operates 28 domestic and international routes, and expects to raise this to between 37 and 40 by the end of this year, including flights to Taiwan and several Southeast Asian destinations.

Vietnam’s airports served 106 million passengers last year, up 13 percent year-on-year, and is set to serve 112 million this year, according to the Airports Corporation of Vietnam.