Vietjet Lines Up USD$347 Mln Aircraft Funding

VietJet Air has signed a memorandum of understanding with Mitsubishi UFJ for a USD$347.2 million loan to part finance its fleet expansion.

The loan will cover financing for three Airbus A321s, the airline said in a statement. The deal is part of VietJet's plans to buy or lease a total of 107 aircraft over the next decade, receiving 10 to 12 new planes a year.

The loan deal in Tokyo between the country's sole private airline and Mitsubishi UFJ, took place on the sidelines of a visit to Japan by Vietnam's ruling Communist Party chief Nguyen Phu Trong.

VietJet has previously said it would explore the possibility of buying aircraft from Boeing to expand its routes, including long-haul operations, and eye new joint ventures with airlines in South Korea, Japan and Taiwan.