Aviation Working Group has placed Vietnam on watchlist after a Vietnamese court prevented lessors from seizing their aircraft. Experts believe that this dispute over the repossession of four leased aircraft could have wider repercussions for airlines in Vietnam.
The name of the airline was not disclosed but an updated version of the warning was posted on its website with a link to a file named "Update No. 1 re VietJet"
VietJet operates Airbus jets and has ordered a total of 186 jets Airbus including 114 A320neo that have yet to be delivered. It has also ordered 200 Boeing 737 MAX, none of which have been delivered.
As reported by Reuters, an unnamed lessor was blocked in its efforts to repossess assets operated by a Vietnamese carrier forcing AWG to issue a warning. With the airline missing lease payments, the lessor initiated legal steps to seize its aircraft and got an approval from the UK court between November 2022 and January 2023.
However, despite Vietnam's aviation regulator agreeing to de-register the jets as part of the repossession process, a court in Hanoi ruled against the decision in February following a lawsuit from one of the airline's shareholders.
Referring to the Cape Town Convention (CTC), AWG said: “The situation represents material developments that implicate CTC compliance in Vietnam. This move could spell difficulty for Vietnamese carriers by driving up leasing costs, as compliance with the treaty enables airlines to receive more favourable rates from lessors.”