VietJet obtains the deferral of repayment of aircraft loans | New
Low-cost carrier VietJet has been successful in securing deferral of loan repayments for aircraft purchases from most of its lenders.
VietJet says it has “worked hard” with its suppliers, local and foreign financial institutions to reduce prices and service charges by 30-70%, and to lengthen payment terms.
“So far, VietJet has concluded agreements to extend from three… to 12 months the payment period of 75 to 80% of the plane agreements with international financial institutions of planes, loans from HSBC, Citibank… and major national banks, ”the carrier said in an emailed statement.
He adds that the reprieve offered by his lenders will help him increase his financial resources, allowing him to focus on areas such as improving the quality of service, expanding freight activities, as well as developing e-commerce and cost management solutions.
Data from Cirium fleets indicate that the airline has a large order book: 124 Airbus A321neos, 120 737 Max 8 and 80 Max 10. It operates a fleet of 75 A320 family aircraft.
In addition, the airline says it has implemented a fuel hedging program to “stabilize fuel costs”, which it says represents more than 40% of its operating costs.
The ongoing coronavirus outbreak has seen VietJet cut nearly all of its schedule, operating only domestic flights and limited cargo flights.