News
Vietnamese carriers seek liquidity
February 17th 2017
Vietnam Airlines and Vietnam’s Jetstar Pacific have agreed to sale-and-leaseback deals to reduce their dependence on loans and also to boost their liquidity. Read More »
The flag carrier plans to sell and lease back three A350-900s from Dubai Aerospace Enterprise and a B787-9 due for delivery this year. These decisions would reduce the airline’s capital requirements for the year by $544 million. It also would cut its debt-to-capital ratio from 4 to 3.2 times by December 31 and to three times by year end 2018.
Vietnam Airlines’ debt-to-capital ratio is relatively low. It has ordered 33 A350s and B787-9s to replace 18 A330s and B777-200ERs.
On Thursday it signed with Aviation Capital Group for long-term leases for six A321neo from 2018- 2019 that will be sourced from the lessor's Airbus order book. Last October, Vietnam Airlines agreed to lease 12 A321neo from Air Lease Corp. (ALC), also with deliveries scheduled for 2018-2019. It flies 56 A321ceo.
Separately, budget carrier Jetstar Pacific, has said it will sell and lease back ten on-order A320s to U.S.-based lessor, Aviation Capital Group (ACG). Jetstar placed the order at last year’s Farnborough Air Show, marking its first direct purchase from Airbus. The airline operates 18 leased A320s. Jetstar Pacific is a 70/30 joint venture between Vietnam Airlines and the Qantas Group.
