Airlines race to lease jets amid global shortage

State-owned Vietnam Airlines has recently sought quotations from suppliers for a plan to wet lease four jets between two and three months starting from June 1.

In a wet lease the supplier provides an aircraft and a crew, often for a short period, in contrast to dry lease in which only an aircraft will be provided.

Other airlines such as Vietjet, Bamboo Airways and Vietravel Airlines are also looking to expand its fleet at least in the short-term.

Due to a global issue with Pratt & Whitney engines, Vietnam Airlines and Vietjet will have to ground over 40 Airbus A321 jets in total for a maintenance which could last until December-end.

So far the engines of 22 jets of the two carriers have been removed for maintenance.

The lessor competitor Bamboo Airways only has five jets and Vietravel Airlines three. Pacific Airlines, which is also operated by Vietnam Airlines Group, has zero such jets.

During the high demand Lunar New Year holiday in January and February, Vietjet wet leased six jets, Vietnam Airlines four and Bamboo Airways two.

A representative of Vietnam Airlines told VnExpress that wet leasing would be even more challenging in the summer compared to earlier this year as there would be high demand globally and prices would go up.

The Civil Aviation Authority of Vietnam said recently that Vietnamese airlines might be short of 24-26 jets in the summer.

Due to a global shortage of jets caused by A321 engine issues and Boeing’s safety crisis, insiders at leasing companies say that there are at times up to five airlines compete to wet lease one jet.

Vietnam Airlines expects to receive two wide-body Boeing 787-10 jets this year, which has 360 seats, double that of the A321.

Domestic ticket prices have risen because of the jet shortage. Ticket price on most popular route Hanoi – Ho Chi Minh City in April has risen 15-20% year-on-year to VND3.6 million.