SINGAPORE, September 8, 2016 – Capturing another major deal in the fast-growing Vietnam airline industry, Milbank, Tweed, Hadley & McCloy LLP has advised Vietjet Aviation in its $2.39 billion agreement to purchase at least 20 A321 passenger jets from Airbus Group SE.
Singapore-based aviation and asset finance partner Paul Ng led the deal team representing VietJet. The agreement with Airbus was reached during the recent state visit to Vietnam by French President François Hollande, first visit by a French president in over a decade. The new fleet of Airbus jets is expected to begin delivery next year and continue through to 2020. Headquartered in Toulouse, France, Airbus is a consortium of French, German, Spanish and British aircraft manufacturers.
The transaction was Mr. Ng’s second large deal this year on behalf of Vietnam’s only private airline – this past May, he advised VietJet in an $11.3 billion agreement to purchase 100 Boeing 737 airliners, which marked the country’s largest-ever commercial aircraft order. That contract was signed during President Barack Obama’s visit to Vietnam. With the two combined orders for more than 120 new aircraft, discount carrier VietJet – which only launched in 2011 – is poised to become Vietnam’s largest airline and one of the region’s largest low cost carriers.
Mr. Ng said: “We are pleased to have represented VietJet in another milestone commercial aircraft purchase agreement. The company is growing quickly and has been a key driver in advancing Vietnam’s passenger airline industry and emergence as a vital hub in the larger Asian marketplace. Milbank is proud to play a role in supplying VietJet with new jets as it serves a growing segment of the flying public.”
In addition to Mr. Ng, the Milbank team for the Airbus transaction included Teo Hui Ling from the Singapore office.
Milbank’s Aviation Practice Group was recognized by AirFinance Journal for 12 separate “Deals of the Year.” The practice was lauded for playing a pivotal role on landmark aviation transactions across Asia, the Middle East, Europe, North America and Latin America.
