MIAMI — Rapidly expanding Vietnamese low-cost airline, VietJet, has signed a Memorandum of Understanding (MoU) with Novus for the financing and leasing of 10 narrowbody aircraft over the next 18 months.

The brand-new planes, which were previously ordered by the Vietnamese carrier, will be delivered over the next year and a half. The list value of the deal is around US$1.3 billion.

This agreement comes in as Vietjet welcomes the fifth aircraft from Novus—an Airbus A321neo.

Source: VietJet

“This MoU with Vietjet is an integral part of our business strategy to accelerate company growth and invest in promising markets. It is a testament to the wide range of products we offer our airline customers, including – in this case – operating lease and high loan to value finance lease,” said Hani Kuzbari, Managing Director at Novus Aviation Capital.

“Novus Aviation Capital is now in its 25th year and we are honored to mark this milestone in our partnership with Vietjet, an airline with a bright future that continues to experience impressive growth.” 

The Vietnamese low-cost operator has one of the youngest fleets in the world, with 68 aircraft, averaging a mere 2.8 years old. The airline also has a significant amount of orders, for both the Airbus A320neo family and Boeing’s 737 MAX planes.

VietJet placed substantial orders for both aircraft families at last years’ Farnborough Air Show. Currently, it has 113 Airbus A321neos and 200 Boeing 737 MAX aircraft on order. The 737 MAX order is split between the MAX 8, the high-density MAX 8 200, and the MAX 10.

Since launching in November 2007, VietJet mas flown over 80 million passengers.

The airline took delivery of its first Airbus A321neo back in January 2018, becoming the first South Asian airline to operate the aircraft. Each A321neo will be powered by Pratt & Whitney engines seating 230 passengers. VietJet expects to use these aircraft on domestic routes.

The airline currently operates around 400 flights per day to 119 destinations in Vietnam and across in Asia. VietJet is also the first private airline to establish itself within Vietnam.