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Banking & Finance

VietinBank finances Jetstar Pacific aircraft purchase

Released at: 11:46, 13/10/2016

VietinBank finances Jetstar Pacific aircraft purchase

Photo: Vietinbank

Bank to provide credit of $117 million for low-cost carrier to buy Airbus A320ceo aircraft.

by Hong Nhung

The Vietnam Bank for Industry and Trade (VietinBank) and Jetstar Pacific Airlines signed a $117 million credit contract on October 10 for the purchase of ten new Airbus A320ceo aircraft.

“This is the first strategic cooperation program between VietinBank and Jetstar Pacific,” Mr. Pham Anh Xuan, Deputy Head of VietinBank’s Public Relations Division, told VET on October 13.

The budget carrier will use the funds to purchase the Airbus A320ceo aircraft to improve its service quality and expand its domestic and international network, according to Mr. Le Hong Ha, CEO of Jetstar Pacific.

The deal will support the airline’s long-term investment and development plan under the low-cost carrier model, which was ratified by its shareholders, Vietnam Airlines and Australia’s Qantas Airways, which hold 70 per cent and 30 per cent, respectively.

Jetstar Pacific signed a contract to buy the A320ceo aircraft with Airbus in early September and will take receipt within the next year, Mr. Ha said.

This is also the first time Jetstar Pacific has directly purchased aircraft. Its currently fleet has 14 A320 aircraft, all of which are leased. It plans to expand its fleet to 30 Airbus A320 aircraft by 2020.

“The bank commits to taking full responsibility for implementing the contract terms and conditions,” said Mr. Bui Nhu Y, Deputy CEO of VietinBank.

Aside from providing loans to Jetstar Pacific, VietinBank is also one of the airline’s partners in online payments, offered to the bank’s credit card and domestic debit card holders.

Jetstar Pacific is a low-cost carrier operating 33 domestic and international routes connecting with Jetstar’s global network in 75 destinations in 17 countries, with 4,000 flights per week.

At a previous meeting with Vietnam Airlines and Qantas, Jetstar Pacific announced the results of its restructuring and the signing of an agreement on its long-term development plan under the low-cost carrier model.

The Airbus A320ceo Sharklet is the new generation of the A320 line from Airbus, with low operating costs and a wide cabin that improves operating efficiency.

VietinBank is the leading bank in Vietnam in terms of scale, brand and operational quality and meets customer needs for financial and banking services.

In June this year Military Bank (MB) and low-cost carrier Vietjet Air also signed a long-term credit contract worth $35.5 million for the purchase of new Airbus A320 aircraft. MB became the first domestic bank to provide long-term credit for Vietjet’s fleet expansion.

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