Vietnamese budget carrier Vietjet has signed a memorandum of understanding with a leading Japanese financial corporation on a multimillion-dollar loan to help finance its fleet expansion, the airline said on Tuesday.
Vietjet and Mitsubishi UFJ Lease & Finance Company Limited (MUL) inked the document yesterday in Tokyo, on the sidelines of the official visit of Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam, to Japan.
General Secretary Trong and Japan’s Prime Minister Shinzo Abe witnessed the signing of the MOU, which will pave the way for MUL to finance Vietjet’s leasing and acquisition of three brand new A321 aircraft worth US$347.2 million, Vietjet said in a press release.
These three airplanes are part of a contract signed earlier between Vietjet and European aircraft manufacturer Airbus to purchase and/or lease a total of 107 planes in coming years, according to the Vietnamese carrier.
Vietjet is expected to receive ten to 12 new aircraft every year until the above contract with Airbus is completed. The airline has so far taken delivery of eight A321s and A320s.
Under the terms of the MOU, MUL and Vietjet will also work together to share the best practices in the operation and management of airlines.
MUL is a member of Mitsubishi UFJ Financial Group and is the leading Japanese leasing company in terms of assets. Its total operating assets reached 4.5 trillion yen ($37.5 billion) at the end of last fiscal year.
The company is accelerating overseas business through consecutive M&A. MUL has the competitive edge on global asset businesses, such as aircraft and aircraft engine leasing, medical and long-term care businesses and eco-related businesses.
In related news, Vietjet said on Monday it will be giving away 500,000 promotional tickets from just VND0 from midday to 2:00 pm every day between September 16 and 18.
The travel period for this promotion is January 1, 2016 to April 22, 2016, which includes the season of high air travel demand before, during and after Tet (Vietnam’s Lunar New Year).
Tickets for domestic routes and international connections to South Korea, Myanmar, Taiwan, Singapore, and Thailand can also be snapped up at incredible prices (VND199,000, VND299,000 and VND399,000) for flights from now until April 22, 2016, according to the airline.