Air Lease Corporation (ALC) has signed an agreement to reduce rental costs and modify aircraft deliveries for Vietnam Airlines (VN, Hanoi), the Vietnamese government said in a statement. The deal was the culmination of a meeting between Prime Minister Pháº¡m Minh ChÃnh and LAC Executive Chairman Steven Udvar-HÃ¡zy in Hanoi on December 15.
The comprehensive fleet restructuring agreement with the US-based lessor will help the majority national carrier cope with its continuing financial difficulties caused by the coronavirus pandemic. According to the statement, ALC will directly reduce leasing costs by $ 420 million on existing contracts and cancel already signed contracts worth $ 600 million.
Without providing specific details, the statement said the agreement covers eighteen jets – twelve A321-200neo and six B787-10. The two sides also revised the leasing arrangements to cover the future recovery in Vietnam and Southeast Asia.
According to the Advanced Ch-Aviation Fleet and Ch-Aviation Fleet Ownership Modules, Vietnam Airlines currently operates a total of twenty A321-200N and four B787-10 with four more of the latter on order. Air Lease Corporation owns and operates the four Boeing jets as well as the four not yet delivered.
ALC leases nine of the A321-200Ns in its portfolio directly to the carrier, as well as two other Airbus narrow-body aircraft through its Irish subsidiary ALC Blarney Aircraft and another through another subsidiary, Blackbird Capital.
The Los Angeles-based lessor is currently Vietnam Airlines’ largest aircraft supplier, and the carrier said in its statement that the deal was reached after a lengthy negotiation process that the prime minister had personally overseen.
Vietnam Airlines currently operates a total fleet of 104 aircraft, of which 45 are leased. As previously reported, it revealed on December 14 that it plans to sell 12 of its devices over the next two years in addition to offloading 15 devices by the end of 2021.
During their meeting, the Prime Minister indicated that Viet Nam planned to resume certain international routes, in particular to the United States, and that Vietnam Airlines would participate in this process.
Udvar-HÃ¡zy stressed that during ALC’s 20-year partnership with the national carrier, Vietnam Airlines has always executed well its agreements with its company and that this bilateral cooperation is now at its best. He expressed his belief that once Vietnam reopens, with the resumption of economic and tourism activities, the airline will recover and grow as well.
In response to a request for comment, ALC confirmed to ch-aviation: âAir Lease Corporation has signed comprehensive restructuring agreements with Vietnam Airlines covering the leasing of 18 aircraft, including 12 Airbus A321neo and six Boeing 787-10 aircraft. These agreements extend the terms and revise the economic terms of the leases closely tailored to recovering economies and air travel to Vietnam and Southeast Asia. He added, “ALC does not comment on or disclose specific amounts on transactions with any of our tenants.”
Editorial comment: Added comment from Air Lease Corporation – 12.17.2021 – 08:55 UTC