Vietjet and AV AirFinance ink $300 million aircraft financing deal

Vietnam’s Vietjet has signed a $300 million deal with AV AirFinance, a partner of investment fund KKR, in order to fund the expansion of its fleet.

This announcement from the airline reaffirms reports made by Reuters last week, in which the media organization stated that Vietjet was set to sign a $200 million aircraft finance deal with AV AirFinance at a meeting in the US.

The agreement is part of a broader series of aircraft financing deals totalling over $4bn that Vietjet has secured with leading US financial institutions, the airline confirmed. These commitments aim to support Vietjet’s new fleet development plan, with the budget carrier projecting to receive nearly 300 aircraft between 2025 and 2027.

“I am steadfast in my commitment to working tirelessly and fostering global partnerships that help bridge cultures, economies, and technologies between Vietnam, the United States, and the wider world,” commented Nguyen Thi Phuong Thao, chairwoman of Vietjet.

As part of its growth strategy, the airline also stated that it is “currently in discussions” to further expand this historic order with Boeing.

This year, Vietjet will begin taking delivery of the first batch of 737 MAX aircraft from its order of 200 aircraft.

The order was originally placed in 2016, when Vietjet finalized a purchase for 100 737 MAX 8 airplanes, setting the mark for the largest-ever single commercial airplane purchase in Vietnam aviation. Two years later, the airline signed a memorandum of understanding (MOU) at the Farnborough Airshow for an additional 100 MAX jets. That agreement, which includes 80 737 MAX 10s and 20 MAX 8s, was valued at more than $12.7bn at the time of the sale.

The airline said that total aircraft purchase is valued at over $24bn.

Vietjet currently operates a fleet of 115 aircraft, with more than 400 aircraft on order.