Vietnamese low-cost carrier Vietjet and aircraft leasing company Castlelake have signed a Memorandum of Understanding (MoU) to finance four Airbus A321neo aircraft valued at US$560 million.
The partnership was announced during the Vietnam-Ireland bilateral talks in Dublin, which took place on October 1-3, 2024.
As part of the MoU, Dublin-based Castlelake, a global investment manager specializing in asset-based investing, will provide financing for four new Airbus A321neo aircraft under Vietjet’s existing order with Airbus.
According to Vietjet, 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 the foundation for future cooperation on financing agreements related to Vietjet’s growing fleet.
“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,” Chris Buckley, Partner and Aviation Chief Commercial Officer at Castlelake said in a statement.
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.”
In July 2024 at the Farnborough International Air Show, Vietjet and Airbus sealed a $7.4 billion agreement for 20 A330-900 jets. The sale was first announced at a signing ceremony at the Singapore Airshow in February 2024 when the two companies entered an MoU.
This is Vietjet’s first foray into widebody aircraft orders and operations.