Kaye Scholer has advised client Vietjet Air, the Vietnamese low-cost carrier and a rising star of Asian aviation, in purchasing from Airbus 30 A321 jets, including nine A321ceos (current engine option) and 21 A321neos (new engine option) narrow-bodied single aisle aircraft, worth a total of $3.6 billion at list price. Vietjet received a discount, which is common for large orders. This milestone aircraft order, which just closed as the first major commercial aircraft order at this year’s Dubai Airshow, signals a major breakthrough in seat capacity growth and route expansion for the airline.
Speaking at the signing event in Dubai, Nguyen Thi Phuong Thao, Vietjet President & CEO, said: “Vietjet has grown faster than expected in the last few years and our previous purchasing plans for new aircraft could not keep up with developing demand. Together with the new aircraft order, we will continue to expand our network and customize services and facilities while still offering the lowest fares in order to ease the travel of people and tourists.”
The A321neo is the largest addition to Airbus’s best-selling single aisle A320 family. The newly ordered aircraft will be delivered from late 2016 until 2020 to meet the airline’s operation expansion to a number of Asian countries, including Japan, China, South Korea and India, as part of its strategic plan. The airline currently operates 35 flights across Vietnam and to Thailand, Singapore, South Korea, Taiwan and Myanmar. Vietjet plans to finance and receive from eight to 12 neo aircraft every year as part of its overall order of in excess of 100 aircraft from Airbus, which is now in motion.
Kaye Scholer’s London-based managing partner and co-head of the Aviation Finance & Leasing practice Phil Perrotta and Aviation Finance & Leasing partner Sidanth Rajagopal advised on the deal.
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