Business
UK Court Sides With Lessor Over Seized VietJet Airbus A321 Planes
A UK judge has ordered Vietnam’s VietJet not to interfere with the export of jets seized by a leasing agency, in the latest twist in a dispute that has brought one of the world’s fastest-growing aviation sectors to the forefront.
FW Aviation (FWA) has taken custody of four Airbus A321 planes in accordance with the airline’s agreement, claiming that the airline has been in default for lease nonpayment since 2021.
However, the lessor, a subsidiary of London-based FitzWalter Capital, accused VietJet in an online hearing on Friday of attempting to stymie the process by intervening behind the scenes with efforts to export one of the passenger jets from Vietnam, where all four remain on the ground.
The dispute has been heard in courts in London, Singapore, and Hanoi, and it is viewed as a test case for lessors’ rights in Vietnam, which has hundreds of Airbus and Boeing jets on order, as well as for broader international leasing standards.
“We have a right to possession and control of this aircraft, and that extends to the ability to export it,” FWA lawyer Akhil Shah told London’s High Court.
VietJet lawyer Alexander Milner denied that the airline was attempting to impede exports and presented comprehensive legal and jurisdictional arguments as to why VietJet could not be held liable in a UK court for a dispute between FWA and Vietnam’s customs authorities.
Leasing accounts for over half of the world’s fleet, and lessors’ power to shift planes from one location to another in the case of default is a critical component of the 2001 Cape Town Convention, which governs the aircraft leasing business.
Airlines in member countries found to be breaking the guidelines may face higher financing rates for future fleets.
Judge David Foxton granted the injunction, questioning if there could be a distinction between owning an aircraft and being authorised to export it, drawing parallels with currency controls or limits on exports of Old Master artworks.
FWA stated that VietJet had communicated behind the scenes with Vietnamese authorities and received mysterious pictures of letters between the lessor and Vietnam’s customs office.
Milner stated that the claimants were prone to construe innocent activities as attempted intervention. According to Reuters, VietJet could not immediately be reached for comment. Vietnam is the next battleground for lessor rights, following confrontations in India and Russia.
The Aviation Working Group, a UK-based organisation that monitors finance rules on behalf of aircraft manufacturers and lessors, placed Vietnam on a watch list last year for failing to comply with the Cape Town Treaty and upheld the decision in October.
India is also on alert due to a conflict between the airline Go First and lessors.
Airlines say that proper processes are essential since the transfer of a valued aeroplane is irrevocable.
VietJet is a budget airline operating in Vietnam. It began operations in 2007 and has since grown to become one of the region’s main carriers.
The airline provides a wide range of domestic and international flights at reasonable fares, making it a popular choice among budget travellers.
The VietJet fleet includes of contemporary aircraft that provide passengers with a comfortable and safe flying experience. VietJet is noted for its punctuality and excellent customer service, which make flying with them a hassle-free experience.
Vietjet in Thailand, “The Thai Vietjet provides inexpensive local and international flights. The airline specialises on providing a no-frills travel experience, with a simple booking process and modest onboard amenities.
Passengers can pick from a variety of destinations throughout Asia, making it an ideal choice for budget-conscious travellers wishing to experience the region without breaking the bank.
Thai Vietjet, with its commitment to efficiency and cost-effectiveness, serves people looking for dependable and affordable air travel options in and around Thailand.”
Thai Vietjet Receives New A320 for Network Expansion
