VietJet Plans $200 Million Aircraft Financing Deal with KKR in Washington

Vietnam's budget airline VietJet is poised to make history by becoming the first Vietnamese carrier to operate China-made passenger jets, specifically the COMAC ARJ21-700, on domestic routes starting mid-April. This significant step could enhance collaboration between Vietnam and China in the aviation sector, despite concerns regarding regulatory approval and safety certifications. Simultaneously, VietJet is set to finalize a $200 million financing deal with AV Air Finance, backed by KKR, to support its ongoing aircraft purchases. This deal, occurring amidst potential tariffs of 46% on Vietnamese exports to the U.S., emphasizes VietJet's strategy to strengthen ties with American aerospace firms like Boeing, with which it has substantial contracts. VietJet's CEO highlighted the company's commitment to increasing imports from the U.S. and fostering favorable conditions for American investments in Vietnam. As VietJet navigates these challenges, its efforts reflect a broader strategy to bolster international relations and economic cooperation.