VietJet moves to settle $250m aircraft leasing dispute after court order

VietJet is preparing to pay approximately $250m to resolve a long-running aircraft leasing dispute with lessor FW Aviation, Reuters reports, after a series of court orders gave the appointed receivers powers over the low cost carrier’s assets outside Vietnam.

The airline is aiming to make the payment by 13 November, when a further hearing is scheduled in London to consider additional sums it may owe, according to people familiar with the matter cited by Reuters. 

The Vietnamese government has reportedly encouraged the airline to reach a quick settlement and instructed the carrier to pay the outstanding amount.

What is behind the VietJet dispute?

The dispute centres on four Airbus A321 aircraft that were grounded in Vietnam during the Covid-19 pandemic. 

FW Aviation, part of London-based investment firm FitzWalter Capital, brought proceedings in 2022 over unpaid lease obligations. 

While all four aircraft had been recovered by December 2022, the two sides remained in dispute over money that FWA said was still owed under the lease agreements.

The resulting judgments put the debt at more than $250m, including interest.

VietJet paid $2m towards the amount in 2025, according to the court record.

VietJet said it had not paid more since it was restricted in paying the judgment debt due to Vietnamese foreign currency restrictions, and that the Vietnamese courts had refused to recognise the English judgments on policy grounds.

Latest in a long-running court saga involving VietJet

The latest developments follow a series of enforcement measures secured by FW Aviation in the English Commercial Court. 

In October, the court appointed two professionals from Alvarez & Marsal as joint receivers over VietJet’s assets outside Vietnam.

Their powers extend beyond existing aircraft to include bank accounts, ticket-sales, maintenance reserves, lease deposits and contractual rights associated with aircraft orders. 

The receivers can also take delivery of aircraft and engines on the airline’s behalf, including new aircraft due from manufacturers such as Airbus and Boeing, and arrange for them to be delivered to a third party.

A separate worldwide freezing order restricts VietJet’s ability to deal with certain assets outside Vietnam without court permission. 

These include undelivered aircraft, engines, purchase-contract rights and deposits. The receivership order also permits the receivers to seize and sell existing aircraft and take control of offshore subsidiaries.

The measures are intended to prevent assets from being moved or transferred in a way that could complicate enforcement of the judgment.