VietJet's Legal Turbulence: $181.8 Million Owed to Leasing Firm

VietJet, a Vietnamese budget airline, has been ordered by London's High Court to pay $181.8 million to leasing firm FW Aviation. The dispute centers around four Airbus A321 jets, whose leases were allegedly terminated due to non-payment during the COVID-19 pandemic. VietJet plans to appeal the decision.

In a recent legal judgment, Vietnamese budget carrier VietJet has been ordered by London's High Court to settle a hefty $181.8 million debt with leasing company FW Aviation. The controversial ruling concerns four Airbus A321 aircraft, whose leases were supposedly canceled after VietJet failed to meet rental payments amid the pandemic-induced air travel slump.

FW Aviation, a branch of FitzWalter Capital, initiated the lawsuit in 2022, arguing that VietJet breached lease agreements. VietJet's legal team countered, claiming that recovering rent alongside repossession of the planes amounted to an unjustifiable "double penalty." Despite their appeal, the court affirmed that the airline owes the substantial sum.

VietJet spokespersons have asserted that the issue is an isolated anomaly, stressing the airline's strong record of meeting financial commitments across its extensive fleet. Meanwhile, FitzWalter Capital has chosen not to comment on the ruling, as VietJet prepares for another hearing next month to contest the resolved matter.

(With inputs from agencies.)