Vietjet, Castlelake reach MoU for four Airbus aircraft valued at 560 million USD

Vietjet and Castlelake, a global alternative investment manager specialising in asset-based investing with nearly 20 years of experience in aircraft investing, leasing and servicing, on October 3 exchanged a Memorandum of Understanding (MoU) to finance four aircraft valued at 560 million USD.

The event took place in the presence of Vietnam’s Party General Secretary and State President To Lam at the Vietnam-Ireland Business Forum.

As part of the MoU, Castlelake intends to provide financing for four new, modern Airbus A321neo aircraft under Vietjet’s existing order with Airbus. These aircraft will be delivered within 2024. The anticipated transaction follows a financing agreement that was completed in 2023 for three Airbus A321neo aircraft and lays a foundation for future cooperation on financing agreements related to Vietjet’s rapidly growing fleet.

“Castlelake is pleased continue building its relationship with Vietjet and to support Vietjet’s mission to provide exceptional aviation service through our finance leasing solutions,” said Chris Buckley, Partner and Aviation Chief Commercial Officer at Castlelake. “We look forward to pursuing this transaction and exploring more opportunities to grow the business with Vietjet in the future.”

Vietjet Chief Executive Officer Dinh Viet Phuong said: “The agreement signed today aligns with Vietjet's strategy to expand its fleet and global flight network. Backed by international financing, Vietjet continues to provide safe, comfortable, and cost-effective flights on new, modern aircraft, connecting travelers to exciting global destinations. Our services not only enhance tourism but also drive economic growth and foster cultural exchange among countries and continents.”

Vietjet currently operates a fleet of over 100 aircraft, including the most advanced, fuel-efficient and safest generations of aircraft in the world, such as the A320, A321ceo, A321neo - A321neo ACF, and A330. The airline is committed to environmental protection and fuel efficiency, with a goal of achieving net-zero emissions by 2050. Vietjet has transported over 200 million passengers, including millions flying for the first time.

With the new aircraft, Vietjet will further expand its network both in Vietnam and internationally, adding new destinations in Australia, India, China, Japan, the Republic of Korea, Indonesia, Thailand, Singapore, Malaysia, Laos, Cambodia, and beyond. Coupled with the airline’s professional and dedicated crews, this addition is expected to meet travelers’ demand, offering excellent flying experiences on happy flights.

Founded in 2005, Castlelake has invested directly or indirectly in more than 650 aircraft of various types and has developed relationships with approximately 200 airlines spanning more than 60 countries around the globe.

The new-age carrier Vietjet has not only revolutionised the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations, and performance, applying the latest technology to all activities and leading the trend, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organisations such as Skytrax, CAPA, Airline Ratings, and many others./.