Vietnamese airline VietJet plans to pay around $250 million to settle a long-running dispute with aircraft leasing company FW Aviation. The payment is expected to take place before November 13, when a London court is due to hold another hearing in the case. The move could help the airline resolve a major legal challenge and receive new aircraft.
The dispute concerns rent owed on four Airbus A321 aircraft that were grounded in Vietnam during the COVID-19 pandemic. FW Aviation, part of London-based investment firm FitzWalter Capital, began legal action against VietJet in 2022 after the airline failed to pay the agreed amounts. Interest has since increased the outstanding debt to around $250 million.
Two people familiar with the matter said VietJet had arranged the funds earlier this week and was working to complete the payment as quickly as possible. They also said Vietnam’s government had encouraged the airline to reach a settlement. The sources requested anonymity because they were not authorised to speak publicly about the matter.
The dispute became more serious after British courts issued orders restricting VietJet’s control over certain assets outside Vietnam. The orders covered aircraft waiting for delivery, engines, purchase agreements, maintenance funds and lease deposits.
A separate court order also appointed receivers to manage a wide range of the airline’s overseas assets. These receivers were given powers to collect money from certain accounts, take delivery of new aircraft and, where permitted, seize or sell existing planes.
The legal action followed concerns that the airline might move assets beyond the reach of the court. The court judgment also noted that VietJet had paid only $2 million towards the debt in May 2025.
The restrictions created uncertainty around the airline’s international aircraft plans. VietJet has more than 500 aircraft on order from Airbus and Boeing combined. It is also preparing to receive its first Airbus A330neo and A321XLR aircraft in the coming weeks.
A successful settlement could help remove some of the legal obstacles affecting these deliveries. Both aircraft types would be new additions to the airline’s fleet and could support its future expansion plans.
However, the final amount and terms will depend on the legal process. FW Aviation had sought the court orders to protect its financial interests, while the airline has not publicly commented on the planned payment because the case remains ongoing.
The dispute is an important financial issue for one of Vietnam’s major low-cost carriers. Resolving it could help VietJet focus on fleet expansion and business operations while reducing uncertainty over its overseas assets.
