Vietnamese low-cost carrier Vietjet on October 10 signed two agreements worth a total of US$1.2 billion with foreign institutions to finance its ambitious fleet expansion.

Vietnam Prime Minister Nguyen Xuan Phuc (2nd row) witnesses Vietjet’s new route announcement ceremony

The airline signed an aircraft financing agreement with Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), and banking group BNP Paribas (France).

Under the agreement, MUL and BNP Paribas to finance Vietjet’s acquisition of up to five brand new aircraft, worth US$614 million, according to the manufacturer’s listed price.

The signing ceremony was witnessed by the Vietnam Prime Minister Nguyen Xuan Phuc, who is on a visit to Japan from October 8 to 10.

Vietjet also signed a memorandum of understanding valued at US$625 million with France-based banking group Natixis and some Japanese equity underwriters to facilitate financing for five additional aircraft.

These deals have been made under a financing plan for Vietjet’s future ownership of the aircraft, the carrier said in a statement. The acquisition of all these aircraft is part of a new-and-modern aircraft contract signed earlier between Vietjet and Airbus, and includes A321neo aircraft.

All aircraft financed today will be delivered to Vietjet in the last quarter of 2018 or early 2019.

Currently, Vietjet operates 60 A320, A321 aircraft with more than 385 flights daily, carrying more than 65 million passengers to date, with 101 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, South Korea, Taiwan, mainland China, Thailand, Myanmar, Malaysia and Cambodia.

Vietjet to open three more routes linking Vietnam and Japan

Low-cost carrier Vietjet announced the opening of three air routes linking Vietnam with Japan at the Vietnam-Japan Investment Promotion Conference in Tokyo on October 10 within the framework of Prime Minister Nguyen Xuan Phuc’s official visit to Japan.

Specifically, the Osaka-Hanoi route will commence operation on November 8, 2018, the Osaka-Ho Chi Minh City route on December 14, 2018, and the Tokyo-Hanoi route on January 11, 2019.

All routes are operated with a daily return flight each. Customers can now book these routes on the carrier’s website vietjetair.com.

Speaking at the event, PM Phuc said that the launch of the routes from Vietnam to Japan’s Kansai region is of significance in sharing the cause to rebuild Kansai’s economy and tourism after it was devastated by a storm in early September. This will also contribute to the tourism and trade development between the two countries and in the region.

“These newly launched flights to Kansai International Airport will be a huge boost for tourism in the Kansai area and thereby contribute to the recovery of the local economy which has been left reeling from the damage caused by typhoon Jebi. I believe that these new routes will also contribute to an increase in the number of Vietnamese visitors coming to Japan,” said Hiroshi Tabata, Commissioner of the Japan Tourism Agency.

He also expressed his belief that Vietjet’s flights to Japan will bring new travel experiences and choices for passengers from Vietnam and Japan thus contributing to the development of comprehensive economic and cultural ties between the two countries.

Vietjet has already worked with Japanese partners to organise several flights from Vietnam to airports in Osaka, Narita, Sendai, Nagoya, Komatsu, Ibaraki and Fukushima. 

Vietjet is the first airline in Vietnam to operate as a new-age airline offering low cost and diversified services to meet customers’ demands.