Vietjet secures $550 mln aircraft funding from Carlyle Group

Vietnamese budget airline Vietjet and Carlyle Group, a US-based leading financial group, signed an aircraft finance agreement worth $550 million on Monday during U.S. President Joe Biden’s visit to Vietnam.

Carlyle Aviation Partners, a wholly-own unit of the Carlyle Group, will finance the 737 Max aircraft from the order of 200 aircraft between Vietjet and Boeing, the Vietnamese carrier said in a release.

This is a significant aircraft order and considered one of the largest commercial contracts, contributing to balancing trade between Vietnam and the U.S.

During President Biden’s Vietnam visit, Vietjet and Boeing agreed on the delivery timeline for the first batch of Vietjet’s 200 B737 Max order. This order, worth over $25 billion, will be implemented over five years with the first delivery of 12 aircraft scheduled for 2024.

Under the deal, the first batch of 737 Max will be delivered to Thai Vietjet, an affiliate company founded by Vietjet and currently one of the leading airlines in Thailand.

Founded in 2002, Florida-headquartered Carlyle Aviation Partners, which operates in the business of global aircraft finance and leasing, now manages a fleet of 396 aircraft in 59 countries.

After suffering a hard blow from the Covid-19 pandemic, Vietnamese carriers have shown signs of a recovery a year and a half after reopening. VietJet flew 12.1 million passengers in the first half of this year, including 3.5 million international ones, up 26% and 30% year-on-year, respectively.

It earned a consolidated after-tax profit of VND387 billion ($16.12 million) on revenue of VND29.77 trillion, spiking 167% and 87% from a year earlier.

VietJet, also known as the "bikini airline", opened 11 international routes in the second quarter of this year to Australia, Indonesia and India, raising its air links to 120, including 75 overseas ones.

Also during Biden’s visit, national flag carrier Vietnam Airlines struck a deal with Boeing to buy 50 737 Max jets totaling $10 billion, with delivery slated for 2027-2030.