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Vietjet To Finance Fleet Expansion With Foreign Investment

Vietjet To Finance Fleet Expansion With Foreign Investment

Vietnamese budget carrier, Vietjet, has signed two agreements worth a total of US$1.2 billion with Mitsubishi UFJ Lease & Finance Company Limited (MUL) and BNP Paribas in order to fund its fleet expansion plans which includes the acquisition of up to five brand new aircrafts, costing a total of US$614 million.

The signing ceremony was witnessed by the Vietnam Prime Minister Nguyen Xuan Phuc and also included the signing of a memorandum of understanding worth US$625 million between Vietjet and Natixis, a French banking group, as well as several Japanese equity underwriters.

These deals have been made under a financial plan whereby Vietjet would claim future ownership of the aircrafts and the acquisition of the new aircrafts, which includes the A321neo aircraft, are also acknowledged as part of a contract signed earlier between Vietjet and Airbus.

Currently, Vietjet operates 60, A320, A321 aircrafts and operates more than 385 flights daily, carrying more than 65 million passengers across 101 routes to destinations such as Vietnam, Japan, Hong Kong, Singapore, South Korea, Taiwan, China, Thailand, Myanmar, Malaysia and Cambodia.

Moving forward, Vietjet has announced plans to develop three new routes linking Vietnam with Japan in the coming three months which would facilitate 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.

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