Vietnam: Domestic Airlines Increase Aircraft Leasing
Domestic airlines are renting aircraft instead of buying them to keep up with aviation market development.
In the last two months, national carrier Vietnam Airlines and Jetstar Pacific, which have the largest market share in Viet Nam, took delivery of new aircraft.
Viet Nam Aircraft Leasing Company (VALC) delivered two Airbus A321-200s to Vietnam Airlines recently. They would be used on medium-range and regional routes.
Nguyen Duy Vien, VALC’s general director, said the 10 A321-200s investment project was worth US$600 million.
“During the world recession, VALC had worked with different international financial institutions and export credit agencies to arrange financing for the project,” Vien said.
Earlier in May, the American Air Lease Corp said it ordered eight Boeing 787-9 Dreamliners to lease to Vietnam Airlines. Under the contract, the aircraft would be delivered in 2017-2018.
Last month, Jetstar Pacific also rented an Airbus 320. It expected to receive another aircraft this month. It planned to lease two aircraft by the end of this year.
Le Hong Ha, Jestar Pacific’s general director, said leasing aircraft would help the company save operating and technical maintenance costs, thus providing cheaper tickets to customers. Desmond Lin, Vietjet Air marketing director, said the carrier would rent several aircraft to expand its routes to major cities and to prepare for international routes.
According to Airbus forecasts, the world aviation market would need more than 28,000 aircraft with a total investment of $4 trillion. Alone, the Asia-Pacific region would account for 35 per cent of the total aircraft orders. — VNS