The High Court of England and Wales has ruled in favour of FW Aviation, ordering VietJet Aviation to pay more than US$181.8 million in a dispute over four aircraft that VietJet failed to return after their leases were cancelled. The court upheld FW Aviation’s right to full termination payments and possession of the aircraft, rejecting VietJet’s penalty clause and title-based defences, according to the decision handed down by the court.
Key points:
- Termination sums upheld: VietJet must pay the full contractual termination amounts under Clause 19.3 of the sub-leases—US$108 million for two Airbus A321neo aircraft and US$57.1 million for two Airbus A321ceo aircraft.
- FWA’s entitlement confirmed: The court granted FWA a declaration that it holds legal title and the right to possession of the aircraft, reinforcing prior judgments and dissuading VietJet from further obstructive conduct.
- Clause 20.4 enforced: VietJet is also liable to pay post-termination ‘holdover rent’—totalling over US$16.7 million—for delayed redelivery of the aircraft, with the court recognising this as a valid liquidated damages clause, not a penalty.