Vietjet Partners with Castlelake for A321neo Financing
Vietnamese low-cost carrier Vietjet has signed a Memorandum of Understanding (MoU) with aircraft leasing company Castlelake to finance four Airbus A321neo aircraft, valued at approximately US$560 million. This partnership was announced during the Vietnam-Ireland bilateral talks held in Dublin from October 1 to 3, 2024.
Under the terms of the MoU, Dublin-based Castlelake, a global investment manager specializing in asset-based investing, will provide financing for these four new Airbus A321neo aircraft, which are part of Vietjet’s existing order with Airbus. Vietjet anticipates that the aircraft will be delivered within 2024, further enhancing its fleet capabilities.
This agreement follows a previous financing arrangement completed in 2023, where Castlelake supported Vietjet with the acquisition of three Airbus A321neo aircraft. The new MoU lays the groundwork for ongoing collaboration between the two companies, potentially opening the door for future financing agreements related to Vietjet’s expanding fleet.
Chris Buckley, Partner and Aviation Chief Commercial Officer at Castlelake, expressed enthusiasm for the partnership, stating, “Castlelake is pleased to continue building its relationship with Vietjet and to support Vietjet’s mission to provide exceptional aviation service through our finance leasing solutions.”
Vietjet’s Chief Executive Officer Dinh Viet Phuong highlighted the strategic significance of the agreement, noting, “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.”
In addition to the current MoU, Vietjet made headlines earlier in July 2024 during the Farnborough International Air Show, where it finalized a $7.4 billion agreement for 20 A330-900 jets with Airbus. This sale was initially announced at a signing ceremony during the Singapore Airshow in February 2024 when the two companies entered an MoU. This marks Vietjet’s first venture into widebody aircraft orders and operations, signaling the airline’s ambitions for growth and expansion into new markets.
With the support of Castlelake and its ongoing commitment to enhancing its fleet, Vietjet is well-positioned to continue its trajectory of growth in the competitive aviation market, offering a diverse range of services and routes to its customers. As Vietjet expands its operations, it remains dedicated to providing high-quality, affordable air travel options that cater to both leisure and business travelers.
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