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Transport

Avation to lease four aircraft to Vietjet Air

The new aircraft are due to be delivered from Airbus in May, July, August, September and November 2016.

Vietjet Air is set to lease four new Airbus A321 aircraft from Avation (LON:AVAP) next year, with the option for a fifth.

The mandate is subject to finalisation of the contract, and would cover a 12-year term.

The lease rates and other terms are typical for transactions of this type, Avation revealed, adding it is seeking to arrange European export credit agency supported finance for the purchase of the aircraft.

Avation executive chairman Jeff Chatfield said: "Avation continues to diversify its fleet. By the end of April 2016 Avation believes that approximately 50% of its aircraft book value will be jet aircraft.

Avation believes that larger high-capacity, narrow body modern commercial aircraft such as the Airbus A321 represent an attractive long term investment class. In addition to this mandate, Avation owns three and has on order a further two Airbus A321 aircraft.”

Vietjet Air currently has 26 Airbus aircraft in operation and has recently carried its twenty-five millionth passenger.

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