Vietjet Air signs aircraft financing agreement with German group

Low-cost carrier VietJet Air and the GOAL German Operating Aircraft Leasing GmbH & Co. KG (GOAL) have signed a strategic agreement paving the way for GOAL to finance Vietjet’s acquisition of four brand new A321 aircraft worth US$464 million.

At the signing ceremony.
At the signing ceremony.

The agreement was signed on July 6, witnessed by Prime Minister Nguyen Xuan Phuc along with many high-ranking officials of Vietnam and Germany.

GOAL is a joint venture of KGAL GmbH & Co. KG (KGAL) and Deutsche Lufthansa AG.

The acquisition of the four aircraft is part of the A320 previously signed family aircraft contract between Vietjet and European aircraft manufacturer Airbus.

Vietjet will receive the aircraft within this year in order to meet its expansion plans for the airline’s domestic and international flight network.

Speaking at the signing ceremony, GOAL Managing Director Jochen Baltes said: “GOAL and KGAL are very excited about the purchase and leaseback of these four aircraft with one of the world’s most dynamic low-cost airlines. Following this agreement, all parties will continue to work and cooperate together on further opportunities in aviation development in the near future.”

According to Vietjet President & CEO Nguyen Thi Phuong Thao, the carrier has received 16 new A321 aircraft from Hamburg, Germany, worth approximately US$2 billion, including Airbus’ 9,000th A320 aircraft, which have caused great excitement in Europe.

“Today’s deal ensures the finance and favourable conditions for Vietjet to further develop its modern fleet, thus helping to ensure the airline’s quality and safety in operations, a key part of our strategy for the long-term development of Vietjet,” Thao affirmed.

Vietjet also recently signed a similar deal with Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), to finance Vietjet’s acquisition of three brand new A321 aircraft, worth US$348 million.