Vietjet faces worldwide asset freeze over US$250m aircraft leasing debt

An English court has imposed a worldwide freezing order covering up to US$251.6 million in assets belonging to Vietnamese low-cost carrier Vietjet as an aircraft lessor seeks to enforce judgments worth about US$250 million arising from a long-running leasing dispute.

The Commercial Court of the High Court of England and Wales granted the order to FW Aviation (Holdings) 1 Limited, or FWA, on October 15 after Mr Justice Saini found a real risk that assets could be moved beyond the reach of creditors.

FWA is a Jersey-registered aircraft leasing company ultimately controlled by UK-based investment fund FitzWalter Capital, while the defendant is VietJet Aviation Joint Stock Company, the Vietnamese listed airline.

Order covers aircraft, deposits and ticket proceeds

The freezing order extends to Vietjet assets including its existing leased fleet and aircraft it has ordered but not yet received, including Airbus A330-900 and A321neo aircraft.

It also covers aircraft engines and cabin equipment on order, including equipment from Rolls-Royce Holdings, as well as pre-delivery payments, maintenance reserves, lease deposits and ticket-sale proceeds held by agents.

The order does not require Vietjet to stop operating. The airline is allowed to deal with assets in the ordinary and proper course of business, although court approval is required for certain transactions involving aircraft orders, maintenance reserves and lease deposits held outside Vietnam.

Dispute dates back to four Airbus A321 aircraft

The litigation centres on four Airbus A321 aircraft delivered to Vietjet in 2018 and 2019 under Japanese Operating Lease with Call Option financing arrangements.

After the Covid-19 pandemic began, Vietjet missed a number of rental payments. The leases were terminated in October 2021, and subsequent English court proceedings found the airline liable for substantial termination payments.

A 2025 judgment assessed termination payments at about US$181.5 million, in addition to other sums that had already fallen due. Interest and legal costs have since pushed the judgment debt beyond US$250 million.

The latest judgment said Vietjet had paid only US$2 million towards the judgment debt on May 19, 2025, leaving virtually all of it outstanding. Efforts by FWA to enforce the judgments have taken place in several jurisdictions, while Vietnamese courts have declined to recognise the principal English judgment.

Mr Justice Saini rejected Vietjet’s arguments about the potential disruption caused by a freezing order. He attributed any such disruption to what he described as the airline’s “wilful refusal to satisfy the judgment debt” and its efforts to resist enforcement, rather than an inability to pay.

Court scrutinises transfer involving aircraft order book

A significant part of the court’s reasoning concerned arrangements involving Vietjet’s aircraft order book, which includes about 300 commissioned Airbus and Boeing aircraft.

The judge found that Vietjet had transferred essentially all of the economic value of its aircraft order book as it stood in December 2024 to Angelica Holding Limited, or AHL, through participation agreements.

The judgment said AHL appeared to have no office, staff or website and described it as having “all the appearances of a classic Cayman shell company”. The court also questioned the economic substance of receivables arising from the arrangement and Vietjet’s previous disclosure of the transactions.

Reports on the ruling said the arrangements had not been disclosed for more than a year.

Receivership also under consideration

In a separate ruling in September, the High Court approved in principle the appointment of receivers over certain Vietjet assets outside Vietnam to assist FWA in enforcing the judgments.

The final receivership order was deferred pending further evidence, including information on likely costs. FitzWalter intends to appoint restructuring consultancy Alvarez & Marsal as receivers if the process proceeds.

FitzWalter welcomed the latest freezing order, while Vietjet declined to comment on the ruling, according to reporting on the case.

No evidence Thai Vietjet operations are frozen

The English order is directed against VietJet Aviation Joint Stock Company in Vietnam, rather than Thai VietJet Air Joint Stock Company Limited, which is incorporated and certified separately in Thailand.

Vietjet’s own financial statements classify Thai Vietjet as an associate in which it holds a 9% equity interest.

The Civil Aviation Authority of Thailand also continues to list Thai Vietjet as an active Thai Air Operator Certificate holder. The sources reviewed show no order freezing Thai Vietjet’s own aircraft or suspending its flights.

Any indirect effects would therefore be more likely to relate to areas such as confidence, financing or future commercial links with Vietjet in Vietnam rather than an automatic suspension of Thai Vietjet’s current operations.

Source: Thansettakij