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| Vietjet’s leaders in a meeting with France President Francois Hollande, who congratulates the airline on its recent impressive achievements regionally and globally. — Photo Vietjet |
Vietjet’s latest order for Airbus aircraft has added to its impressive achievements within four years entering
the domestic aviation market, becoming the country’s fastest growing airline.“Vietjet has grown faster than expected in the last few years and our previous purchase plans for new aircraft could not keep up with the growing demand,” Vietjet President and CEO Nguyen Thi Phuong Thao said.
Six more A321 jets, worth US$682 million, will be delivered to Vietjet in 2017, following a deal inked with aircraft manufacturer Airbus at last week’s Paris Air Show 2015, one of the world’s largest aviation exhibitions.
The purchase of the A321s, one of the most modern single-aisle aircraft produced by Airbus, is in addition to a deal signed last year by the new age airline and the European aircraft manufacturer for the purchase and lease of 100 aircraft.
As of early 2015, six A320 and A321 aircraft from that initial order were delivered to Vietjet. As per the contract, Vietjet will continue to receive six to 12 aircraft every year till the order is completed.
“Since we took delivery of our first A321 in March this year, we have benefited strongly from the additional capacity offered by the aircraft and its low operating costs. We are therefore placing this additional order for the A321 to meet the demand on some of our most popular routes,” Thao said.
“Vietjet is one of the fastest growing carriers in Asia and in the world. We are just confirming the incredible success of the airline gaining market share in Viet Nam,” said President and CEO of Airbus Fabrice Bregier at the signing event.
“The A320 Family offers the lowest operating costs in the single aisle market and this latest order from Vietjet further confirms the growing popularity of the A321 as the largest member of the product line,” he added.
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| Vietjet and Airbus now reach new heights of strategic partnership. — Photo Vietjet |
Some analysts said Vietjet’s deal to purchase additional Airbus A321 aircraft was a wise business move.
Fleet expansion was a decisive task for airlines if they wanted to effectively conquer the aviation market, Dr Pham Quy Tho from the Academy of Policy and Development told local media.
Tho described Vietjet’s purchase of the medium-range Airbus A320 and A321 as an appropriate decision, as it strove to open routes to more destinations in Southeast Asia and the Asia-Pacific.
“We can see a very clear development direction of Vietjet, which focuses on mid-range customer segments, and short-haul and medium-air routes in order to meet the travel needs of people,” Tho said.
Backed by international partners
During the Paris Air Show, the airline co-signed a $60-million credit agreement with BNP Paribas, the French bank, which will finance Vietjet’s purchase of six aircraft from the Airbus A320 family between now and the end of 2017.
BNP Paribas has acted as a financial adviser to Vietjet earlier for the airline’s contract to purchase and lease 100 aircraft from Airbus.
“BNP Paribas is a leading international bank in aviation finance. We are glad to have the bank as an aircraft-financing partner after working together successfully in the past. The contract signed today sets another milestone in our relationship, emphasising the continuing trust of BNP Paribas in Vietjet,” Vice President of Vietjet Dinh Viet Phuong said.
It also signed another major contract with several partners for its fleet’s insurance package for the 2015-2016 period, worth $1.5 billion. British insurance giants Willis Group Holdings and JLT Group were appointed as brokers, along with Viet Nam-based insurers Bao Viet Holdings Company, PetroVietnam Insurance Joint Stock Coporation (PVI) and Global Insurnce Corporation (GIC). — VNS
Vietjet one of the fspanstest growing cspanrriers in the world: Airbus CEO
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