Tokyo (VNA) – Low-cost carrier Vietjet on October 10 signed andexchanged an aircraft financing agreement with Mitsubishi UFJ Lease &Finance Company Limited (MUL), a member of Japan’s leading finance groupMitsubishi UFJ Financial Group, and the banking group BNP Paribas of France.

The agreement paves the way for MUL and BNP Paribas tofinance Vietjet’s acquisition of five brand-new aircraft totalling 614 millionUSD, according to the manufacturer’s listed price.

In addition, the carrier also inked a memorandum ofunderstanding with French banking group Natixis and some Japanese equityunderwriters to facilitate financing for five other aircraft with a total valueof 625 million USD.

These deals have been made under a financing plan forVietjet’s future ownership of the aircraft.

The acquisition of all these aircraft is part of anew-and-modern aircraft contract signed earlier between Vietjet and Airbus, includingA321neo aircraft. They will be delivered to Vietjet in the last quarter of 2018or early 2019.

“The critical financing agreements signed today once againconfirm the confidence of leading Japanese financiers in Vietjet as the airlineprepares to launch new routes to Japan soon. Also, these deals will greatlycontribute to Vietjet’s plan for fleet expansion and network growth in thecoming time, thus helping to better connect Japan and Vietnam,” Vietjet’s VicePresident Dinh Viet Phuong, said at the signing ceremony.

Under the terms of the agreement, Vietjet and all financingpartners will also work together to share best practices for the operation andmanagement of the airline, boosting effectiveness and encouraging sustainablegrowth.

Vietjet is the first airline inVietnam to operate as a new-age airline offering low cost and diversifiedservices to meet customers’ demands.

Currently, Vietjet operates 60 A320, A321 aircraft with morethan 385 flights daily, carrying more than 65 million passengers to date, with 101routes covering destinations across Vietnam and international destinations suchas Japan, Singapore, the Republic of Korea, China, Hong Kong and Taiwan (China),Thailand, Myanmar, Malaysia and Cambodia.-VNA