Vietnamese low-cost carrier VietJet has been ordered to pay more than $180 million to a UK-based leasing firm following a long-running legal dispute over four grounded aircraft.
The ruling, delivered by London’s High Court on Thursday, determined that VietJet owes $181.8 million to FW Aviation, an affiliate of investment group FitzWalter Capital.
The dispute centres around four Airbus A321 jets, previously grounded in Vietnam, for which lease agreements were terminated due to unpaid rent during the COVID-19 pandemic.
FW Aviation initiated legal action in 2022, asserting that VietJet remained liable for payments under the terminated lease contracts.
VietJet’s legal team countered that FW Aviation had regained possession of the aircraft and claimed that enforcing both the return of the planes and payment of the outstanding debt would effectively constitute a “double penalty”.
However, the High Court rejected this defence, siding with the leasing firm in what marks the latest development in an international legal battle that has spanned courts in London, Hanoi, and Singapore.
Despite the ruling, VietJet was granted permission last year to appeal an earlier decision establishing its liability to FW Aviation. That appeal is scheduled to be heard next month.
Responding to the judgement, a VietJet spokesperson stated:
“The airline has consistently met its financial obligations to dozens of global banks and aircraft lessors supporting our fleet of hundreds of aircraft. This particular dispute involving four aircraft is both isolated and exceptional.”
The case highlights ongoing tensions within the global aviation industry, where pandemic-era disruptions have continued to trigger legal conflicts between airlines and lessors over aircraft payments and repossessions.
