Vietnam Airlines is one of the hardest hit companies in Vietnam due to the impact of the COVID-19 pandemic.

They also reviewed aircraft lease terms based on economic and aviation recovery in Vietnam and Southeast Asia.

ALC agreed to directly reduce the leasing price by US$420 million under the current contract, and to cancel aircraft lease contracts previously signed with Vietnam Airlines, with a total value of US$600 million.

The agreement was reached following negotiations between Vietnam Airlines and ALC with support from Vietnamese Prime Minister Pham Minh Chinh.

Successful negotiations will help Vietnam Airlines significantly save aircraft costs, balance cash flow and overcome difficulties from the COVID-19 pandemic.

During a meeting with ALC executive chairman Steven Udvar-Hazy in Hanoi on December 15, PM Pham Minh Chinh said the COVID-19 pandemic has taken its heavy toll on economies globally, including Vietnam, and aviation is one of the hardest hit industries.

He suggested that ALC assist Vietnam Airlines overcome difficulties, better restructure its fleet and cooperate more effectively with the company in the coming time.

He informed the US executive on Vietnam’s pilot plan to resume international commercial flights next month, including routes linking destinations between Vietnam and the US, and Vietnam Airlines will play the leading role in carrying out the scheme.

For his part, Steven Udvar-Hazy said ALC has agreed to share Vietnam Airlines’ difficulties and losses, and he believed that the resumption of international commercial lights would help Vietnam Airlines recover and develop strongly.

Headquartered in Los Angeles, Air Lease Corporation is one of the largest aircraft leasing companies in the world with more than 450 aircraft for lease globally. It is Vietnam Airlines’ largest aircraft leasing partner with a total of 22 new generation aircraft, accounting for more than 30% of the total number of aircraft leased by the airline.

Source: VOV

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