Vietnamese budget airline VietJet has been ordered to pay just over US$180 million to a leasing firm following a legal battle over four aircraft, according to a ruling from London’s High Court on
Thursday.
The case was brought by FW Aviation, a subsidiary of UK-based investment firm FitzWalter Capital, which sued VietJet in 2022 over four Airbus A321 planes. These aircraft had previously been grounded in Vietnam.
FW Aviation claimed VietJet defaulted on lease payments, and the leases were terminated after the airline failed to pay rent during the Covid-19 travel downturn.
VietJet argued that the lessor had already regained possession of the planes, and forcing payment on top of that would constitute a "double penalty." However, the court sided with FW Aviation, ordering VietJet to pay US$181.8 million.
This is the latest development in a broader legal dispute involving courts in London, Hanoi, and Singapore. VietJet has been granted permission to appeal an earlier ruling and is set to present its case next month.
In a statement, a VietJet spokesperson said the airline has consistently met its financial commitments to its banking and leasing partners."The dispute concerning four aircraft is isolated and exceptional," the spokesperson added.
FitzWalter Capital has not yet commented on the ruling. Photo by Alan Wilson, Wikimedia commons.