Low-cost carrier VietJet has managed to secure deferrals of loan repayments for aircraft purchases from most of its lenders.
VietJet states that it has been “working hard” with its suppliers, local and foreign financial institutions to cut 30-70% of prices and service fees, and to extend payment terms.
“Up to now, VietJet has reached agreements to extend three…to 12 months’ payment time of 75% to 80% of aircraft agreements with international aircraft financial institutions, credits from HSBC, Citibank…and big domestic banks,” the carrier says in an emailed statement.
It adds that the reprieve offered by its lenders will help it expand its financial resources, allowing it to focus on areas such as improving quality service, cargo business expansion, as well as developing e-commerce and cost management solutions.
Cirium fleets data indicates the airline has a large orderbook: 124 Airbus A321neos, 120 737 Max 8s and 80 Max 10s. It operates a fleet 75 A320 family aircraft.
Separately, the airline states that it has implemented a fuel hedging programme to “stabilise fuel costs”, which it says accounts for over 40% of its operating cost.
The ongoing coronavirus outbreak has seen VietJet cut nearly its entire schedule, operating only limited domestic service and freighter flights.
