Vietjet orders six A321 at Paris Air Show

Thursday, Jun 18, 2015 11:36

Representatives from Vietjet and Airbus at the signing ceremony in Paris on June 17. The six additional A321 jets will be delivered in 2017 to tap Vietjet's rapid growth. — Photo Vietjet
PARIS (Biz Hub) — Vietjet inked a deal with aircraft manufacturer Airbus to purchase six more A321 jets worth US$682 million at the Paris Air Show 2015, one of the world's largest aviation exhibitions.

These aircraft will be delivered in 2017 to tap Vietjet's rapid growth, the carrier said, adding that the purchase of A321, one of the most modern single-aisle aircraft produced by Airbus, is in addition to a deal made last year by the new-age airline and the European aircraft manufacturer for the purchase and lease of 100 aircraft.

As of early 2015, a total of six A320 and A321 aircraft from that initial order were delivered to Vietjet. As per the contract, Vietjet will continue to receive six to 12 aircraft every year until the order is complete.

"Vietjet has grown faster than expected in the past few years and our previous purchase plans for new aircraft could not keep up with developing demand," Vietjet President and CEO Nguyen Thi Phuong Thao said at the signing ceremony on Wednesday.

"In March 2015, we also received our first A321 aircraft, the 9,000th aircraft made by Airbus, as part of the original contract. This jet has already been put into operation safely and effectively," Thao said.

"We are pleased to see Vietjet renewing its confidence in Airbus by expanding their A320 Family fleet. The A320 Family offers the lowest operating costs in the single aisle market and this latest order from Vietjet further confirms the growing popularity of the A321 as the largest member of the product line," said Fabrice Brégier, President and CEO of Airbus.

Deals with multiple partners

On the same day, Vietjet also signed deals with multiple partners in a bid to facilitate its continued growth.

The airline co-signed a $60 million credit agreement with BNP Paribas, the French bank and financial services, which will finance Vietjet's purchase of six aircraft from the Airbus A320 family until the end of 2017.

Apart from the reviewed credit agreement at the Paris Air Show, Vietjet signed another major contract with several partners for insurance package worth $1.5 billion for its fleet's in 2015-16.

British insurance giants Willis Group Holdings and JLT Group were all appointed as brokers along with Viet Nam-based insurers Bao Viet Holdings Company, PetroVietnam Insurance Joint Stock Corporation (PVI), and Global Insurance Corporation (GIC). — VNS

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