Vietjet agrees loan repayment delays with lenders

HANOI (Reuters) – Vietjet Aviation has reached agreements with its lenders to delay repayments on loans it used to buy aircraft, the Vietnamese budget airline said on Thursday.

“Vietjet has reached agreements with domestic and international financial institutions to delay the payment for 70%-80% of its aircraft for 3-12 months, it said in a statement, adding that the lenders include HSBC, Citibank and the World Bank.

Vietjet said it was also seeking to cut its costs by 30%-70% and delay payments to other suppliers.

“This is part of our efforts to maintain our normal operations and prepare for a strong rebound when the virus pandemic is over,” Vietjet Vice President Nguyen Thi Thuy Binh told Reuters.

Vietjet and other airlines resumed domestic commercial flights in Vietnam on Thursday after the government partially lifted a 15-day coronavirus lockdown in some parts of the country.

Binh said the company’s cargo volumes have increased significantly during the lockdown, including transporting medical supplies.

Vietnam had 268 reported cases of coronavirus cases as of Thursday with no related deaths, the Ministry of Health said.

(Reporting by Khanh Vu; editing by Jason Neely)