In yet another landmark deal for Vietnam’s first modern publicly traded aircraft company, VietJet, a team from Milbank, Tweed, Hadley & McCloy LLP advised the company in a US$3.58 billion transaction to purchase 215 aircraft engines from joint French-American maker CFM. This deal was signed in the presence of Vietnam’s Prime Minister Nguyen Xuan Phuc and US Secretary of Commerce Wilbur L. Ross, Jr.
Milbank also advised VietJet on its agreement with Honeywell Aviation on an auxiliary power unit supply and technical maintenance to power the airline’s 98 airplanes. The agreement, worth US$180 million, is aimed to help VietJet’s fleet be maintained under world leading standards.
The Milbank team led by Singapore-based partner Paul Ng, who heads the aviation and asset finance practice in Asia, advised VietJet on previous billion-dollar engine and aircraft deals with Airbus and Boeing, and also counseled the company in its historic initial public offering earlier this year, and associate Audrey Wang.
VietJet’s 12-year engine purchase agreement with CFM includes maintenance and service support. CFM is a 50-50 joint venture between GE and France’s Safran Aircraft Engines.
“The Asian aviation market is one of the most dynamic and important in the world,” said Mr. Ng, who heads Milbank’s aviation and asset finance practice in Asia. “VietJet is poised to become a leading low-cost carrier in East and Southeast Asia. Milbank is delighted to continue advising on significant matters for VietJet as the company grows and expands.”
