VietJet’s domestic ambitions dealt a blow after court orders global asset freeze

Low-cost carrier VietJet’s hopes of expanding into Australia’s domestic market have hit a snag, after the United Kingdom High Court granted an order to freeze the carrier’s assets as part of a fight with a hedge fund seeking to recover debts.

FW Aviation, an aircraft leasing company registered in Jersey, secured court orders against the airline for $US250 million ($360 million) for four Airbus A321s in London late last week.

The order follows a long-running battle by a private investment fund FitzWalter Capital, which controls FW Aviation, to get the Vietnam-based VietJet to pay for the use of the four planes.

UK courts have ordered three judgments against VietJet, for $18.8 million (in 2024), $182 million (in 2025) and $18.3 million (in a third trial), with the airline making a partial $2 million payment in 2025.

In the latest case, the business and property division of Britain’s High Court heard how VietJet has resisted paying, and even halted flights of aircraft to Singapore where they would have been seized under court orders.

“In October 2021, following VietJet’s continuing failure to pay rent for its use of the aircraft (during the COVID lockdowns), the lenders served notices on VietJet seeking to terminate the sub-lease agreements,” the court ruling reads.

“Shortly thereafter, FWA acquired all rights formerly held by the lenders,” which included the right to recover sums owed under sub-lease agreements and custody and control of the aircraft, the court said.

Justice Pushpinder Saini found that VietJet’s actions constituted a “risk of dissipation”, or danger that a defendant will hide, transfer, or sell assets before a court judgment can be enforced.

This masthead understands the prospect of legal judgments against VieJet would likely complicate its bid to receive permission to operate as a domestic airline. VietJet has been approached for comment.

The low-cost carrier has applied to the Civil Aviation Safety Authority (CASA) for an air operator’s certificate, which would allow it to operate on domestic routes in Australia. It’s expected to operate up to 10 Boeing 737s on routes between Sydney, Melbourne and Brisbane, under the name Cherrie Air.

CASA has been approached for comment.

Vietjet, which was Vietnam’s first privately owned airline when it began flying in 2011, has made network expansion a priority, operating divisions in Thailand and as far away as Kazakhstan.

The company has previously raised eyebrows for stunts featuring women dressed only in bikinis.

VietJet is also expected to become the third international airline offering flights from Western Sydney International – after Air New Zealand and Singapore Airlines. It’s slated to begin flying between Western Sydney and Ho Chi Minh City on 10 January 2027, operating two return services per week, on Wednesdays and Sundays.

It’s website shows prices for those flights from WSI to Ho Chi Minh ranging for $411 to $34.

VietJet’s international arm – based out of Vietnam – currently operates daily return flights to Ho Chi Minh City from Sydney and Melbourne. Brisbane and Perth are connected to Ho Chi Minh City with five and three weekly return flights, respectively.

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