Aviation Working Group, a UK-based non-profit entity representing major aviation manufacturers, lessors, and financial institutions, has warned its members about Viet Nam’s compliance with international aircraft leasing norms, following a legal dispute over an attempted repossession of four aircraft from one of the country’s carriers.

A court in Hanoi blocked an attempt to seize the jets despite an alleged payment default - and despite Viet Nam’s regulator agreeing to deregister the jets. That compelled the group, which monitors financing laws on behalf of its members, to add the country to its regularly updated “watchlist notice”.

The airline involved was not named, but according to Reuters, an updated version of the warning was posted on the members-only area of its website with a link to a file referring to VietJetAir (VJ, Hanoi Noi Bai International).

VietJetAir typifies Viet Nam’s fast-growing air travel market, with 314 Airbus and Boeing aircraft still on order according to the ch-aviation fleets module, encompassing eighty-nine A321-200Ns, five A321-200NX, twenty A321-200NY(XLR)s, and 200 B737-8s, to add to its current fleet of 77 jets.

At least 72 of these 77 aircraft now making up the fleet are leased, from 20 lessors. VietJetAir has been in a protracted dispute with one of these lessors, Avation, which leases six A321-200s to the low-cost carrier.

Aviation Working Group monitors the compliance of countries around the world to the Cape Town Convention, of which Viet Nam is a member. Through the treaty, airlines are able to secure favourable financing rates in return for their countries making it easier for lessors and owners to repossess aircraft if payments are missed.

The group said that the lessor in the Hanoi case, also unnamed, had asked the court for permission to seize the aircraft between November and January, backed by a court order in the United Kingdom. Avation, which is a member of Aviation Working Group, had reportedly filed a lawsuit against VietJetAir in the High Court of Justice of England and Wales in 2021, although its executive chairman denied the reports.

VietJetAir did not immediately respond to a request for comment from ch-aviation.