Vietnam’s budget airline VietJet and UAE-based Novus Aviation Capital entered into a memorandum of understanding (MoU) on jointly setting up an aircraft financing and leasing firm in Vietnam, the carrier has said. 

The MoU was signed at a ceremony in Dubai on Saturday, in the presence of Vietnam’s Prime Minister Pham Minh Chinh, who was there to attend the 28th United Nations climate change summit (COP28), Vietjet said in its press release on the same day.   

According to the memorandum, the newly-established joint venture will initially focus on financing and acquiring 15 new aircraft ordered by VietJet from Boeing and Airbus. Deliveries for these aircraft are scheduled to commence next year.

The company is anticipated to undergo expansion to offer comprehensive financial support to Vietjet in the future.

Simultaneously, Vietjet also signed another MoU with SAF One, Novus’s established and dedicated sustainable aviation fuel (SAF) platform, to develop the supply and use of SAF in Vietnam.

SAF is a type of fuel produced from waste materials, such as used cooking oil. SAF offers a significant reduction in environmental carbon emissions compared to traditional fuels.

This collaboration will contribute to building a greener aviation environment and reducing carbon emissions in the global aviation industry. 

The MoU makes Vietjet a pioneering airline engaging in research, development, and utilization of SAF. 

“Partnering with Vietjet on these ventures is a testament to Novus Aviation Capital’s commitment to advancing the aviation industry through developing innovative solutions and structures,” said Hani Kuzbari, co-CEO of Novus Aviation Capital.

This partnership will aid Vietjet in advancing the expansion of its fleet and in achieving its long-term aviation strategies, Kuzbari said. 

He emphasized that the collaboration between his company and Vietjet, facilitated through SAF One, for the development and provision of technology-agnostic SAF solutions in Vietnam, exemplifies the company's commitment to providing global solutions to the aviation industry.

Vietjet’s deal with Novus is poised to enhance the carrier's financial capacity, enabling it to meet the demands of growth, investment, and the expansion of its flight network and aircraft fleet in the coming period, Vietjet’s CEO Dinh Viet Phuong told the ceremony.

The carrier also intends to implement cutting-edge solutions aligned with global aviation trends, ensuring the delivery of high-quality air travel products to customers worldwide, Phuong added.

“The use of sustainable aviation fuel is a crucial step in the sustainable development of the aviation industry, and Vietjet is proud to be at the forefront of airlines committed to contributing to this collective effort,” he concluded.

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