|Vietnam Airlines is one of the hardest hit airlines in Vietnam due to the impact of the COVID-19 pandemic.|
They also reviewed aircraft leasing terms based on the economic and aviation recovery in Vietnam and Southeast Asia.
ALC agreed to directly reduce the lease price by US$420 million under the current contract and to cancel previously signed aircraft leases with Vietnam Airlines, worth a total of US$600 million .
The deal was reached following negotiations between Vietnam Airlines and ALC with the support of Vietnamese Prime Minister Pham Minh Chinh.
Successful negotiations will help Vietnam Airlines to significantly reduce aircraft costs, balance cash flow and overcome difficulties related to the COVID-19 pandemic.
During a meeting with ALC Executive Chairman Steven Udvar-Hazy in Hanoi on December 15, Prime Minister Pham Minh Chinh said the COVID-19 pandemic had wreaked havoc on economies around the world. , including Vietnam, and that aviation was one of the hardest hit industries.
He suggested that ALC help Vietnam Airlines to overcome difficulties, better restructure its fleet and cooperate more effectively with the company in the coming times.
He briefed the US executive on Vietnam’s pilot plan to resume international commercial flights next month, including routes connecting destinations between Vietnam and the US, and Vietnam Airlines will play the lead role in setting up program work.
For his part, Steven Udvar-Hazy said that ALC agreed to share Vietnam Airlines’ difficulties and losses, and he believed that resuming international commercial flights would help Vietnam Airlines recover and grow strongly.
Based in Los Angeles, Air Lease Corporation is one of the largest aircraft leasing companies in the world with over 450 aircraft for lease worldwide. It is Vietnam Airlines’ largest aircraft leasing partner with a total of 22 new-generation aircraft, accounting for more than 30 percent of the airline’s total leased aircraft.
How to save Vietnamese air carriers
During the fourth Covid-19 outbreak, Vietnam’s Civil Aviation Administration asked domestic airlines to limit the number of flights from provinces and cities implementing social distancing under the directive. 16.
Vietnam Airlines takes on huge outstanding debt of VND 13.3 trillion
The total outstanding debt incurred by Vietnam Airlines (VNA) has reached VND 11.338 trillion. The airline still cannot pay for aircraft rental, fuel, engine repair and flight services to its foreign partners.