Vietnam Airlines and Air Lease Corporation (ALC) have reached and signed comprehensive restructuring agreements covering the leasing of 18 aircraft, including 12 Airbus A321neo and six Boeing 787-10 aircraft on extended terms and revised lease economics closely tailored to the recovering economies and air travel in Vietnam and Southeast Asia. Completion of Fleet Restructuring Ceremony took place this afternoon in Hanoi under the witness of the Prime Minister.
Vietnam Airlines reached a Support Agreement with ALC after a long negotiation under the direction and strict monitoring of the Prime Minister. ALC agreed to support Vietnam Airlines on the basis of its high appreciation of Vietnam Airlines' restructuring plan, as well as its belief in the prospect of Vietnam Airlines' recovery and development. The support agreement with ALC is an important achievement for Vietnam Airlines in its efforts to restructure and overcome the Covid-19 pandemic on its own.
Headquartered in Los Angeles (USA), ALC is one of the largest aircraft leasing companies in the world with more than 450 aircraft leased globally. ALC is currently the largest aircraft lessor of Vietnam Airlines with a total of 16 aircraft belonging to the latest generation aircraft lines including 12 A321neo aircraft and four B787-10 aircraft in operation.
The successful negotiation results in ALC contributing to help Vietnam Airlines save significantly on aircraft costs, balance cash flow and overcome difficulties from the Covid-19 pandemic.
With Vietnam's largest fleet of more than 100 aircrafts, Vietnam Airlines has a relatively high proportion of aircraft costs in the total cost structure. The large-scale fleet, while many flight routes are suspended because of Covid-19, has put considerable cost pressure on Vietnam Airlines. Therefore, restructuring the fleet and cutting costs are strategic goals for the national airline to soon overcome the Covid-19 crisis.