Sunday, 24 November 2024
Airlines

Vietnam Airlines to sell 27 planes, reaches agreement with major aircraft lessor

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Image: Vietnam Airlines A321 taking off (Image Credit: Vietnam Airlines/Airbus)

As part of efforts to mitigate the impact of the COVID-19 pandemic has had on the airline, Vietnam Airlines plans to sell 27 planes within the next few years. The Vietnam flag carrier also signed a comprehensive fleet restructuring agreement with a major aircraft lessor.

According to a report from the VN Express, Vietnam Airlines plans to sell 15 planes this month and 12 others within the next two years.

During a recent extraordinary general meeting of shareholders, Vietnam Airlines CEO Le Hong Ha was quoted saying the airline plans to sell the first 15 planes – 9 A321s and 6 ATR-72s – in December. 12 more A321s would be sold between 2022 and 2023.

Le further added the plan is aimed at reducing the number of aircraft Vietnam Airlines currently owns as it accelerates its fleet modernization by replacing planes aged over 12 years. Even with the reduction of aircraft, the airline predicts there would still be an aircraft surplus by 2025.

Vietnam Airlines has a fleet of 106 aircraft, including 29 wide-body planes and 7 ATR-72s. It is estimated to have an excess of eight wide-body planes and 22 narrow-body equivalents next year.

As part of its fleet reduction plans, the airline has sold 5 A321s within the last five months.

Fleet Restructuring Agreement with Air Lease Corporation (ALC)

Following the announcement of the plans to sell more aircraft from its fleet, Vietnam Airlines has signed a comprehensive fleet restructuring agreement with US-based Air lease Corporation (ALC).

The recently signed agreement deals with Vietnam Airlines’ rental of 18 aircraft – 12 A321neos and 6 Boeing 787-10s – during the remaining lease term under their contract.

Following negotiations under the monitoring of Vietnam’s Prime Minister, Vietnam Airlines and ALC reviewed the aircraft lease provisions based on the economic and aviation recovery in Vietnam and Southeast Asia.

Based in Los Angeles, California, ALC is the largest supplier of aircraft for lease to Vietnam Airlines.

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