US-based Air Lease Corporation (ALC), the largest aircraft leasing partner of Vietnam Airlines, agreed to cut lease rates which would help the national flag carrier save over US$1 billion in fees.

Prime Minister Pham Minh Chinh and ALC President Steven Udvar-Hazy. Photo: Nhat Bac

Prime Minister Pham Minh Chinh attended the signing ceremony on financial support for aircraft leasing between Vietnam Airlines and ALC held today [December 15].

Previously in the negotiation process, Chinh has suggested ALC directly apply a lease rate cut worth $420 million for the remainder of the validity period of the current contract between two sides and a financial obligation cut worth $600 million via the cancellation and delay of the delivery schedule of new aircraft.

In a separate meeting with ALC President Steven Udvar-Hazy, Chinh said the Covid-19 pandemic has caused unprecedented impacts on the aviation industries around the world.

“Along with support from the Government, the goodwill from partners of Vietnam Airlines is necessary at this difficult period,” Chinh said.

The prime minister expected the airline to take advantage of ALC’s support to overcome the current crisis and grasp opportunities for future development.

According to Chinh, the Government as the largest shareholder of Vietnam Airlines would continue to follow and address issues that the airline is facing.

Chinh highlighted the strong progress in Vietnam-US relations over the years and continues to be a priority for the Vietnamese Government.

In the aviation industry, the US remains a key partner for Vietnam, in which aircraft leasing and purchase have been the core business.

“The Vietnamese Government is committed to creating favorable conditions for aviation companies from both countries to cooperate and thrive,” he said.

To further improve cooperation in this field, Chinh called for ALC to continue supporting Vietnam Airlines in the coming time, which serves as a contribution to the bilateral relations.

Chinh noted Vietnam’s aviation industry has huge potential for development, especially as the country puts tourism as a spearhead economic sector.

For his part, ALC President Steven Udvar-Hazy stressed his commitment to boosting strategic cooperation between the company and Vietnam Airlines.

He expressed strong belief in the restructuring plan of Vietnam Airlines and also the recovery prospect of the airline.

Based in Los Angeles, ALC is one of the world’s largest aircraft leasing companies with over 450 airplanes for lease around the world.

ALC is currently the largest partner of Vietnam Airlines with over 22 aircraft on lease, or 30% of the total aircraft that the airline is leasing.