To facilitate its continued growth, Vietjet inked deals with multiple partners today at The Paris Air Show 2015, one of the world’s biggest international aviation exhibitions.
The airline co-signed a US$60 million credit agreement with BNP Paribas, the French bank and financial services, which will finance Vietjet’s purchase of six aircraft from the Airbus A320 family between now and the end of 2017.
Previously, BNP Paribas acted as a financial adviser to Vietjet for the airline’s contract to purchase and lease 100 aircraft from Airbus. The new-age airline has already received six aircraft from that order in 2014 and early 2015.
Dinh Viet Phuong, Vice President of Vietjet, said: “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, emphasizing the continuing trust of BNP Paribas in Vietjet.”
Besides that the credit agreement at the Paris Air Show, Vietjet signed another major contract with several partners for its fleet’s insurance package for 2015-2016 worth US$1.5 billion.
British insurance giants Willis Group Holdings and JLT Group were all appointed as brokers along with Vietnam-based insurers, Bao Viet Holdings Company, PetroVietnam Insurance Joint Stock Corporation (PVI) and Global Insurance Corporation (GIC).
Vietjet previously ordered up to 63 Airbus aircraft, including 42 A320neo, 14 A320ceo and seven A321ceo, plus 30 purchase options and a lease of seven other A3210 aircraft. The value of 63 aircraft is US$6.4 billion, and the agreement on the total 100 aircraft amounts to $9.1 billion. As per the contract, Vietjet will receive six to 12 aircraft every year until the order is complete.
By confirming an order of six additional A321 aircraft from Airbus, to be delivered in 2017, Vietjet has underscored how the airline’s growth has already exceeded the expectations of last year.
Established in 1909, the Paris Air Show – the world’s oldest air show – is held every second year at Le Bourget Airport in north Paris, France. This year, the 51st Paris Air Show is taking place from 15 - 21 June, 2015. As always the event attracts the world’s leading aircraft manufacturers, engine makers, airlines and members of the general public.