HANOI, Vietnam, Dec. 16 11, 2021 (GLOBE NEWSWIRE) — Vietnam Airlines and Air Lease Corporation (ALC) have concluded and signed comprehensive restructuring agreements covering the lease of 18 aircraft, including 12 Airbus A321neos and six Boeing 787-10s on extended terms and cost savings. revised lease closely tailored to the resumption of economies and air travel in Vietnam and Southeast Asia. The fleet restructuring completion ceremony took place this afternoon in Hanoi under the witness of the Prime Minister.
Vietnam Airlines has reached a support agreement with ALC after a long negotiation under the guidance and strict control of the Prime Minister. ALC agreed to support Vietnam Airlines on the basis of its high appreciation of Vietnam Airlines’ restructuring plan, as well as its confidence in the prospect of Vietnam Airlines’ recovery and development. The support agreement with ALC is an important achievement for Vietnam Airlines in its efforts to restructure and overcome the Covid-19 pandemic on its own.
Based in Los Angeles (USA), ALC is one of the largest aircraft leasing companies in the world with over 450 aircraft leased worldwide. ALC is currently Vietnam Airlines’ largest aircraft lessor with a total of 16 aircraft belonging to the latest generation aircraft lines including 12 A321neo aircraft and four B787-10 aircraft in operation.
The success of the negotiations allows ALC to contribute to helping Vietnam Airlines significantly save aircraft costs, balance cash flow and overcome the difficulties of the Covid-19 pandemic.
With Vietnam’s largest fleet of over 100 aircraft, Vietnam Airlines has a relatively high proportion of aircraft costs in the total cost structure. The large-scale fleet, while many air routes are suspended due to Covid-19, has put considerable pressure on Vietnam Airlines’ costs. Restructuring the fleet and reducing costs are therefore strategic objectives for the national airline in order to quickly overcome the Covid-19 crisis.