VietJet's domestic ambitions hit by UK court asset freeze

Global freeze order complicates airline's bid for Australian domestic license

By LineZotpaper

Published19 October 2026

Read Time2 min

Sources3 outlets

The low-cost carrier VietJet has been dealt a blow to its plans to launch domestic flights in Australia after the UK High Court ordered a worldwide freeze of its assets, as part of a debt recovery battle with aircraft leasing company FW Aviation.

VietJet, Vietnam's first privately owned airline, has applied to Australia's Civil Aviation Safety Authority (CASA) for an air operator's certificate that would allow it to operate domestic routes under the name Cherrie Air. It planned to run up to 10 Boeing 737s on services between Sydney, Melbourne and Brisbane.

However, late last week FW Aviation, a Jersey-registered company controlled by investment fund FitzWalter Capital, secured a court order worth $US250 million ($360 million) against VietJet for four Airbus A321s. UK courts have previously issued three judgments in the dispute: $18.8 million in 2024, $182 million in 2025, and $18.3 million in a third trial, with the airline making a partial payment of $2 million in 2025.

The court heard that VietJet resisted paying and even halted flights to Singapore where the aircraft could have been seized. Justice Pushpinder Saini found that VietJet's actions constituted a "risk of dissipation" — a danger that the defendant could hide or sell assets before a judgment can be enforced.

The legal ruling is expected to complicate VietJet's bid for a domestic air operator's certificate. The airline was approached for comment, as was CASA.

VietJet, which launched in 2011 and has drawn attention for stunts featuring bikini-clad flight attendants, operates divisions in Thailand and Kazakhstan. It is also slated to become the third international carrier at Western Sydney International Airport, with flights to Ho Chi Minh City beginning 10 January 2027. Its international arm already runs daily services from Sydney and Melbourne, and several weekly flights from Brisbane and Perth.

Analysis

Why This Matters

The asset freeze threatens VietJet's domestic expansion, which could have increased competition on Australian routes.
The case demonstrates the international enforcement of aviation leasing debts via UK courts.
CASA's assessment of VietJet's fitness to hold an air operator's certificate may be influenced by the legal findings.

Background

VietJet is a Vietnamese low-cost carrier founded in 2011. It applied to CASA for a domestic air operator's certificate to operate as Cherrie Air. FW Aviation, controlled by FitzWalter Capital, has been pursuing the airline since it defaulted on lease payments for four Airbus A321s during the COVID-19 pandemic. UK courts have now issued multiple judgments against VietJet.

Key Perspectives

[FW Aviation / FitzWalter Capital]: The fund has obtained several UK court judgments against VietJet, including the latest worldwide asset freeze, to recover debts from aircraft leases. The court accepted the argument that VietJet posed a risk of dissipating assets. [CASA]: The Australian regulator has been approached for comment on how the court orders affect VietJet's application. Its decision will determine whether the airline can enter the domestic market.

What to Watch

CASA's decision on VietJet's air operator's certificate.
Further court proceedings in the UK or elsewhere regarding the asset freeze.
Whether VietJet's planned Western Sydney International Airport launch proceeds as scheduled.

Sources

VietJet’s domestic ambitions dealt a blow after court orders global asset freeze · WA Today - Latest News
VietJet’s domestic ambitions dealt a blow after court orders global asset freeze · Sydney Morning Herald - Latest News
VietJet’s domestic ambitions dealt a blow after court orders global asset freeze · Brisbane Times - Latest News

Checked

10 claims in this story checked against 1 source: 8 supported.

Show each claim

SupportedHeadline: VietJet's domestic ambitions are hit by a UK court asset freeze.WA Today - Latest News: “VietJet’s domestic ambitions dealt a blow after court orders global asset freeze.”
Partly supportedSummary: the global freeze order complicates VietJet's bid for an Australian domestic licence.WA Today - Latest News: “This masthead understands the prospect of legal judgments against VieJet would likely complicate its bid to receive permission to operate as a domestic airline.”
SupportedThe UK High Court ordered a worldwide freeze of VietJet's assets, as part of a debt recovery battle with FW Aviation.WA Today - Latest News: “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.”
SupportedLate last week FW Aviation secured a court order worth US$250 million ($360 million) against VietJet for four Airbus A321s.WA Today - Latest News: “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.”
SupportedUK courts have issued three judgments against VietJet: $18.8m (2024), $182m (2025), $18.3m (third trial), with a $2m partial payment in 2025.WA Today - Latest News: “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.”
Partly supportedThe court heard VietJet halted flights to Singapore where the aircraft could have been seized.WA Today - Latest News: “heard how VietJet has resisted paying, and even halted flights of aircraft to Singapore where they would have been seized under court orders.”
SupportedJustice Pushpinder Saini found VietJet's actions constituted a 'risk of dissipation', meaning a danger the defendant could hide or sell assets before judgment is enforced.WA Today - Latest News: “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.”
SupportedVietJet has applied to CASA for an air operator's certificate to run up to 10 Boeing 737s on domestic routes between Sydney, Melbourne and Brisbane under the name Cherrie Air.WA Today - Latest News: “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.”
SupportedVietJet is slated to become the third international carrier at Western Sydney International, with flights to Ho Chi Minh City from 10 January 2027.WA Today - Latest News: “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.”
SupportedVietJet's international arm runs daily services from Sydney and Melbourne and several weekly flights from Brisbane and Perth.WA Today - Latest News: “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.”