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Vietjet sued for $33.6m by Aircraft Leasing Company

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Vietjet sued for $33.6m by Aircraft Leasing Company

Old 31st Oct 2021, 12:22
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Vietjet sued for $33.6m by Aircraft Leasing Company

Plane Leasing Company Sues Vietnamese Airline For $33.6M
Law360, London (October 27, 2021, 6:17 PM BST) -- An aircraft leasing company has sued a Vietnamese budget carrier for $33.6 million in outstanding rent for six Airbus planes, which has piled up since early in the COVID-19 pandemic.

Four subsidiaries of London-listed Avation PLC said Vietjet Aviation, a budget airline in Vietnam, owes them 16 months of rent for six Airbus planes used for international flights, according to an Oct. 1 claim in the High Court, which has now been made public.

Vietjet has not paid rent since May 2020, the subsidiaries told the High Court. This breached the lease agreement, which established payments had to be made monthly.

The two sides signed lease agreements for the six Airbus jets in 2019. The claimants sent a letter to Vietjet Aviation in August, saying that they were terminating the contracts with immediate effect because of the missed payments.

The subsidiaries also sued the airline's affiliate, AAA Golden Aircraft Star No. 5 Ltd.

The claimants demanded full payment of the outstanding amounts plus interest within 14 calendar days.

The interest was calculated on Sept. 30 and will continue to accrue daily until the payment is made in full, the filing says.

Neither side immediately responded to a request for comment.

The pandemic has upended the travel sector as governments imposed entry restrictions worldwide in 2020.

Vietjet acknowledged in its annual report that it had suffered alongside the rest of the industry, with net revenue dropping by 64% in 2020 compared to 2019.

The claimants are represented by Morgan Lewis & Bockius LLP. Additional counsel info was not immediately available.

The defendants are represented by in-house counsel.

The case is AVAP Leasing (Europe) II Pte. Ltd. and others v. AAA Golden Aircraft Star No. 5 Ltd. and another, case number CL-2021-000571, in the High Court of Justice of England and Wales.

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