Vietnam Airlines has just put up for auction 11 narrow-body A321ceo aircraft, including two airplanes from last year’s sale and nine new ones for this year’s sale.
Vietnam Airlines is inviting auctions for 11 A321ceo aircraft, manufactured in 2004, 2007 and 2008 to execute its plan to rejuvenate its narrow-body fleet. In addition, the aircraft auction will also help Vietnam’s national airline with cash flow and consolidating finance to cope with the recent Covid-19 outbreak in the country.
This is not the first time the Vietnamese flag carrier has auctioned its current planes. Among the 11 aircraft that Vietnam Airlines offers for sale this year, there are two remaining from the sale in 2020. Before that, the airline has also offered to sell many old A321ceo aircraft in the fleet as there was a sale of five A321ceo aircraft in October 2019 and nine A321ceo aircraft in August 2020.
According to Vietnam Airlines’ 2019 consolidated financial statements, the airline has sold five A321ceo aircraft with a total liquidation value of about 37 million USD. However, the national airline actually handed over three aircraft and earned 365 billion VND (16 million USD) only, along with 23.5 billion VND (1 million USD) in compensation because the partner refused to take the other two aircraft.
With the current pandemic situation, other airlines are less likely to purchase aircraft and therefore, conducting the auction for aircraft at this time from Vietnam Airlines is considered to have a low chance of success. However, Vietnam Airlines said that it still persists to this plan and the total number of old aircraft that can be restructured in the whole period of 2021-2025 is 26 A321 aircraft.
In addition, the airline is also planning the sale and leaseback of its spare engine PW1133G-JM, which is expected to be handed over in July.
Moreover, Vietnam Airlines is negotiating to delay the time of receiving leased aircraft, which are six wide-body Boeing 787-10 and narrow-body A320Neo, to the end of 2021 and in 2022 and 2023.