Wednesday, 25/06/2008 16:42

VietJetAir inks contracts for aircraft lease

VietJet Aviation Joint Stock Co. (VietJetAir) has contracted to lease two Boeing B737-700 aircraft from the global commercial aircraft leasing and finance firm GECAS as part of its preparation to commence, services later this year.

Brian Presbury, new chief executive officer of VietJetAir, told reporters during a luncheon in HCMC on Monday that VietJetAir expected to receive the aircraft in November, or one month ahead of schedule for the first commercial passenger flight in Vietnam.

Presbury said VietJetAir had placed deposits for the aircraft lease and that the first private airline in Vietnam would be able to put the airplanes right into service upon their arrival.

Presbury said it took time for the cabin crew members to get familiar with the aircraft, which will be configured for 148 seats of two classes.

He calculated that air tickets could be available in October for people to book for VietJetAir's domestic flights scheduled for December this year.

Passengers will be able to buy VietJetAir's air tickets on the carrier's website, its call center, sales offices, sales counters at airports and travel agencies.

As VietJetAir operates as an integrated airline and follows the business model between full-serviced and low-cost carriers, it will offer passengers complimentary drinks and snacks, refreshments for purchase, and gift catalogues for shopping.

VietJetAir plans to fly from Hanoi, where it is headquartered, to HCMC and Danang and vice versa before expanding its network in Vietnam. The carrier will then fly to regional destinations such as Hong Kong, Thailand's Bangkok, Singapore, Southern China, Korea, Japan and Singapore if it gets the Government's approval.

Presbury said VietJetAir was now looking to lease a third aircraft and would look to raise money next year to lease more new aircraft depending on demand. He revealed the airline's plan to lease and purchase 20 aircraft in the future.

VietJetAir will need 30 pilots in the initial time, with almost all of them from overseas. The carrier is training its cabin crew members to ensure the take-off preparation will proceed as scheduled. Presbury said that the airline would create 400 new jobs in the next 12 months.

However, Presbury named the shortage of human resources, especially executives for the airline industry in Vietnam, as among the current major challenges for new carriers, in addition to rising world oil prices.

"Starting a new airline is not easy at all," he said.

VietJetAir has just appointed Lucky Cheong as chief financial officer to direct and oversee strategic financial planning for the airline.

The Ministry of Transport licensed VietJetAir in late 2007 to operate air passenger and cargo transport, and other air logistics services. The airline company has registered capital of VND600 billion (some US$37.5 million) and is a 100% Vietnamese-owned company, whose shareholders include T&C Group, Sovico Group and Housing Development Bank.

VNN

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