Vietnam Airlines and Air Lease Corporation have agreed on a leasing discount exceeding $1 billion for 18 aircraft while the former face financial challenges amid the pandemic.
U.S.-based ALC, one of the biggest aircraft leasers in the world with 450 jets, will reduce leasing charges by $420 million for the rest of the contract duration of existing jets while the remaining $600 million will be discounted on new leases.
Vietnam Airlines is leasing 16 jets from ALC, comprising 12 narrow-body A321 Neo and four wide-body Boeing B787-10.
With the biggest fleet in Vietnam of over 100 jets, the national flag carrier is facing financial pressure in retaining its aircraft, with many routes suspended due to Covid-19.
Restructuring its fleet and cutting costs are its main goals to overcome the Covid-19 crisis, the airline stated.
CEO of the carrier Le Hong Ha said Tuesday the airline would have an oversupply of jets until 2025, and plans to sell 27 over the next two years.