Vietnam Airlines scores $1 billion discount on jet lease

A Vietnam Airlines aircraft is seen at Noi Bai International Airport in Hanoi, Sept. 9, 2021. Photo by VnExpress/Ngoc Thanh

Vietnam Airlines and Air Lease Corporation have agreed on a leasing discount exceeding $1 billion for eighteen aircraft while the former face financial challenges amid the pandemic, reports VN Express.

U.S.-based ALC, one of the biggest aircraft leasers in the world with 450 jets, will reduce leasing charges by $420 million for the rest of the contract duration of existing jets while the remaining $600 million will be discounted on new leases.

Vietnam Airlines is leasing sixteen jets from ALC, comprising twelve narrow-body A321 Neo and four wide-body Boeing B787-10.

With the biggest fleet in Vietnam of over one hundred jets, the national flag carrier is facing financial pressure in retaining its aircraft, with many routes suspended due to Covid-19.

Restructuring its fleet and cutting costs are its main goals to overcome the Covid-19 crisis, the airline stated.

CEO of the carrier Le Hong Ha said Tuesday the airline would have an oversupply of jets until 2025, and plans to sell 27 over the next two years.

Join our 3 x a week Vietnam News, Travel and Expat information newsletter and keep up to date. https://aseannow.com/newsletter.php