Purchase made under deal with BNP Paribas at Paris Air Show, where it also came to terms with insurers over fleet insurance.
Vietjet Air signed a $60 million credit agreement on June 17 at the Paris Air Show with France’s BNP Paribas to finance the purchase of six aircraft from the Airbus A320 family between now and the end of 2017.
According to Mr. Dinh Viet Phuong, Vice President of Vietjet Air, BNP Paribas is a leading international bank in aviation finance and Vietjet is glad to have the bank as an aircraft-financing partner after working together successfully in the past. “The contract signed today sets another milestone in our relationship and emphasizes the continuing trust of BNP Paribas in Vietjet,” he added.
BNP Paribas previously acted as financial adviser to Vietjet in its contract to purchase and lease 100 aircraft from Airbus. The new-age carrier has already received six aircraft from that order, in 2014 and early this year.
Vietjet also signed another major contract with several partners for fleet insurance for 2015-2016 worth $1.5 billion. British insurance giants Willis Group Holdings and the JLT Group were appointed as brokers, along with Vietnam-based insurers Bao Viet Holdings, the PetroVietnam Insurance Joint Stock Corporation (PVI), and the Global Insurance Corporation (GIC).
Vietjet previously ordered 63 Airbus aircraft, including 42 A320neo, 14 A320ceo, and seven A321ceo, plus 30 purchase options and a lease of seven other A320s. The value of the 63 aircraft is $6.4 billion and the agreement for the 100 aircraft totaled $9.1 billion. Under the contract, Vietjet will receive six to 12 aircraft every year until the order is completed.
By confirming an order of six additional A321 aircraft from Airbus, to be delivered in 2017, Vietjet has underscored how its growth has already exceeded expectations.