Vietnam Airlines strikes fleet restructuring deal with ALC

December 16, 2021 | 10:15

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Vietnam Airlines has signed a comprehensive fleet restructuring agreement with the US-based Air Lease Corporation (ALC) in efforts to help the national flag carrier surmount difficulties caused by the COVID-19 pandemic.

Vietnam Airlines strikes fleet restructuring deal with ALC

Prime Minister Pham Minh Chinh (sixth from right) witnesses the agreement exchange between Vietnam Airlines and the ALC in Hanoi on December 15 (Photo: VNA)

Hanoi – Vietnam Airlines has signed a comprehensive fleet restructuring agreement with the US-based Air Lease Corporation (ALC) in efforts to help the national flag carrier surmount difficulties caused by the COVID-19 pandemic.

The agreement deals with Vietnam Airlines’ renting of 18 aircraft, including 12 Airbus A321Neos and six Boeing B787-10s, during the remaining lease term under their contract.

The two sides also reviewed the aircraft lease provisions based on the economic and aviation recovery in Vietnam and Southeast Asia.

Vietnam Airlines said the agreement, achieved after a long negotiation process under the Prime Minister’s monitoring, is an important achievement in its efforts to restructure and overcome the pandemic.

The ALC, headquartered in Los Angeles and one of the world’s largest aircraft leasing companies, is currently the largest supplier of aircraft for lease of Vietnam Airlines.

Aircraft-related costs account for a relatively big proportion in total expenses of Vietnam Airlines, which has the biggest fleet - more than 100 planes - in the country. Meanwhile, the suspension of many air routes due to the COVID-19 pandemic has put great cost pressure on this carrier.

General Director Le Hong Ha said Vietnam Airlines had 106 planes in July. It has sold two A321s since then and is planning to sell nine more A321s and six ATR-72s this month. Twelve more A321s will be sold between 2022 and the end of 2023.

The firm predicted that its fleet will continue facing redundancy by 2025. Given this, it is restructuring its fleet, negotiating with leasing companies about support measures, and will sell more planes, he added.

VNA

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