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VietJet Aviation JSC said it has reached agreements with domestic and international lenders to delay repayments on about 80% of loans for its aircraft purchases after the budget carrier experienced a significant drop in passengers during the novel coronavirus outbreak.
The lenders, which include HSBC Holdings PLC and Citibank NA, also agreed to delay repayments for three to 12 months, VietJet said in an emailed statement.
Vietnam’s aviation authority suspended most domestic and international flights in March in an effort to curtail the spread of the virus. It gave permission to local airlines to begin resuming some domestic flights.
VietJet, which has not released its first-quarter financial data yet, is also negotiating with some local and foreign suppliers to reduce costs and service fees by 30% to 70%, it said.
The carrier said it is also discussing with Airbus SE about deliveries this year of A320neo narrow-body jets it has on order, without providing details. The low-cost carrier has also for the first time entered into fuel-hedging contracts to reduce costs, it said.
VietJet operates 86 Airbus A320s. It has another 186 Airbus single-aisle aircraft on order and 200 Boeing Co 737 Max jets, which have been grounded globally since March 2019 following crashes in Indonesia and Ethiopia.
Renegotiating loans and contracts will enable VietJet to boosts its businesses amid the virus, it said.
The airline is expanding its cargo business and developing e-commerce services.