Vietjet inks strategic aircraft financing agreement with Mitsubishi UFJ Financial Group
In this article (5)
Today in Tokyo, Vietjet and Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), signed a strategic agreement as witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc and high-ranking dignitaries from Vietnam and Japan. The agreement will pave the way for MUL to finance Vietjet’s acquisition of three brand new A321 aircraft, worth US$348 million, according to the manufacturer’s listed price.
The three aircraft are part of the A320 family aircraft contract signed earlier between Vietjet and European aircraft manufacturer Airbus. Vietjet will receive the aircraft within this year to meet expansion plans for the airline’s domestic and international flight network. The airline has so far taken delivery of more than 20 brand new A321s and A320s.
Under the terms of the agreement, Vietjet and MUL will also work together to share best practices for the operation and management of airlines.
Last week, in the U.S., Vietjet also signed a series of deals worth a total of US$4.7 billion for engines and components maintenance support and its techical services, auxiliary power unit (APU) supply and APU technical maintenance and aircraft financing and/or purchasing.
Questions & Answers
Q.What is the total value of the three new A321 aircraft being financed by Mitsubishi UFJ Lease & Finance Company?
What is the total value of the three new A321 aircraft being financed by Mitsubishi UFJ Lease & Finance Company?
The three A321 aircraft are valued at US$348 million, based on the manufacturer's listed price. This financing agreement will support Vietjet's expansion plans for its flight network.
Q.Are these three A321 aircraft part of a previously announced order by Vietjet?
Are these three A321 aircraft part of a previously announced order by Vietjet?
Yes, these three aircraft are part of a larger A320 family aircraft contract that Vietjet had previously signed with European aircraft manufacturer Airbus. They are expected this year.
Q.Beyond aircraft financing, what other areas will Vietjet and Mitsubishi UFJ Lease & Finance Company collaborate on?
Beyond aircraft financing, what other areas will Vietjet and Mitsubishi UFJ Lease & Finance Company collaborate on?
Under the terms of the agreement, Vietjet and Mitsubishi UFJ Lease & Finance Company will also collaborate on sharing best practices for the operation and management of airlines. This is part of their strategic partnership.
Q.What other significant deals has Vietjet recently signed in addition to this financing agreement?
What other significant deals has Vietjet recently signed in addition to this financing agreement?
Last week in the U.S., Vietjet signed deals worth US$4.7 billion. These covered engine and component maintenance, technical services, APU supply and maintenance, and further aircraft financing or purchasing.
Reader pulse
Is this financing a smart move for Vietjet's expansion?
22,950 votes so far