iscover
Vietnamese low-cost carrier Vietjet has been hit with a global asset freeze by a UK court over unpaid aircraft leases.
Vietjet, which has reportedly been making moves towards establishing a domestic Australian subsidiary, is being chased by creditor FitzWalter Aviation (FWA) over around $360 million in debt on four Airbus A320 aircraft, dating back to 2021.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
In a judgment imposing a worldwide freezing order (WFO) against Vietjet, UK Commercial Court Judge Pushpinder Singh Saini excoriated the airline, describing it as a “won’t pay” debtor rather than a “can’t pay” debtor.
“It has taken extensive steps in a number of jurisdictions to delay or defeat enforcement efforts by FWA including by way of appeals,” he wrote.
“I further got the impression … that [Vietjet] resents having to pay because, although the Judgment Debt follows from contractual financing arrangements it freely entered into, it perceives some unfairness in a result where defaults by it of around US$8 million in rental payments have led to so substantial a Judgment Debt as well as loss of aircraft.”
Justice Saini also noted apparent efforts by Vietjet to avoid paying its debts, including not flying nine aircraft to Changi Airport that were under a seizure order in Singapore, and the use of a Cayman Islands-based shell company called Angelica Holding Limited.
“I have little sympathy for the claimed disruption which may arise as a result of the grant of a WFO: if it occurs, it will have been caused by VietJet’s own wilful refusal to satisfy the Judgment Debt and strenuous anti-enforcement efforts rather than a genuine inability to pay,” he wrote.
“It therefore has only itself to blame and I find it inconceivable given the extent of its commissioning of new aircraft that it does not have substantial dollar assets outside Vietnam to pay the Judgment Debt.”
The news comes as Vietjet looks to be moving ahead with plans for an Australian domestic arm, possibly under the name “Cherrie Air”, with its first 737 MAX 8 aircraft registered in Australia last month and a rumoured goal of 10 aircraft.
Vietjet has also announced plans to fly to Western Sydney Airport (WSI) next year, initially at two weekly A330 services from WSI to Ho Chi Minh City in January, increasing to three starting in March, with its Thai subsidiary to begin four weekly services to Bangkok starting in November next year.
Want to see more stories from trusted news sources?
Make Australian Aviation a preferred news source on Google.
Click here to add Australian Aviation as a preferred news source.
