VietJet doubles Airbus A330neo order amid expansion plans and legal challenges

In a major fleet expansion move, VietJet Aviation has doubled down on its ambitions to become a long-haul player in Asia’s aviation landscape. The Vietnamese low-cost carrier signed a fresh order for 20 Airbus A330-900neo wide-body aircraft, building on a previous commitment made last year.

The announcement was made during French President Emmanuel Macron’s state visit to Vietnam, symbolising deeper economic ties between Paris and Hanoi.

What’s in the deal?

The newly signed order brings VietJet’s total A330neo commitment to 40 aircraft, reinforcing its push to expand routes to Europe, Australia, and beyond. The A330-900neo, known for its improved fuel efficiency and longer range, will enable VietJet to transition from a regional operator to a global competitor.

According to Airbus, the aircraft are expected to be delivered over the next several years and will support the airline’s plans to strengthen its international footprint. Chairwoman Nguyen Thi Phuong Thao said the move reflects VietJet’s “long-term investment in a modern, environmentally responsible fleet,” as reported by Reuters.

At list price, each A330-900neo costs around $374 million, making the deal worth nearly $7.5 billion, though significant industry-standard discounts are expected to apply.

VietJet’s global ambitions

Founded in 2007, VietJet has built a reputation as Vietnam’s largest privately-owned airline, known for aggressive pricing and rapid expansion. With a current fleet of 115 Airbus jets, the airline primarily services short- to medium-haul destinations across Asia, including China, South Korea, India, and Australia.

But with increasing competition in the budget space and demand for long-haul, affordable options rising post-pandemic, the carrier is betting big on larger aircraft. Along with its Airbus fleet, VietJet also has 200 Boeing 737 MAX aircraft on order, although deliveries have yet to commence.

A cloud of legal trouble

While the aircraft order reflects a bold vision, VietJet’s legal and financial troubles may dim its expansion trajectory.

In April, the London High Court ruled that VietJet owes $181.8 million to FitzWalter Capital’s leasing arm, FW Aviation, in a long-running dispute involving four A321 aircraft. The case, stemming from unpaid lease payments during the COVID-19 pandemic, ended in a verdict unfavourable to the airline, which failed to honour rent agreements after borders closed and travel demand plummeted.

As part of the judgment, VietJet was required to make three payments of $60.5 million. But according to Bloomberg, the airline has already missed its first installment while it appeals the ruling.

Legal experts say the verdict raises serious questions about VietJet’s financial stability and could influence lessor confidence and future capital access.

The timing: strategic or risky?

The fleet expansion also comes at a critical moment for global aviation. Geopolitical tensions and trade wars, particularly involving the United States and the European Union, are disrupting supply chains and impacting airline costs. US President Donald Trump’s latest 50 per cent tariff threat on EU goods, now delayed to July 9, adds another layer of uncertainty for carriers relying on European aircraft manufacturers.

On the domestic front, Vietnam is experiencing strong post-pandemic air traffic growth. According to the International Air Transport Association (IATA), Vietnam is projected to be one of the world’s fastest-growing aviation markets over the next two decades.

But the big question remains: can VietJet navigate its legal turbulence and continue soaring, or will its expansion plans face grounding if its financial liabilities worsen?