Vietjet inks US$1.2 billion financing agreements in Japan for fleet expansion
Updated at Wednesday, 10 Oct 2018, 15:46
The Hanoitimes - The deals are part of Vietjet’s ambitious plan to expand its fleet and network.
Vietnamese low-cost carrier Vietjet on October 10 signed two agreements worth a total of US$1.2 billion with foreign institutions to finance its ambitious fleet expansion.
The airline signed an aircraft financing agreement with Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), and banking group BNP Paribas (France).
Vietnam Prime Minister Nguyen Xuan Phuc (2nd row) witnesses Vietjet’s new route announcement ceremony. Photo: Vietjet
Under the agreement, MUL and BNP Paribas to finance Vietjet’s acquisition of up to five brand new aircraft, worth US$614 million, according to the manufacturer’s listed price.
The signing ceremony was witnessed by the Vietnam Prime Minister Nguyen Xuan Phuc, who is on a visit to Japan from October 8 to 10.
Vietjet also signed a memorandum of understanding valued at US$625 million with France-based banking group Natixis and some Japanese equity underwriters to facilitate financing for five additional aircraft.
These deals have been made under a financing plan for Vietjet’s future ownership of the aircraft, the carrier said in a statement. The acquisition of all these aircraft is part of a new-and-modern aircraft contract signed earlier between Vietjet and Airbus, and includes A321neo aircraft.
All aircraft financed today will be delivered to Vietjet in the last quarter of 2018 or early 2019.
Currently, Vietjet operates 60 A320, A321 aircraft with more than 385 flights daily, carrying more than 65 million passengers to date, with 101 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, South Korea, Taiwan, mainland China, Thailand, Myanmar, Malaysia and Cambodia.
Vietjet on Wednesday announced the airline’s three new routes linking Vietnam with Japan in the coming three months, contributing to the growth of tourism and trade between the two countries and across the region. The new routes include Osaka-Hanoi, Osaka-Ho Chi Minh City, and Tokyo-Hanoi. All routes are operated with a daily return flight each.