Vietnam plans to buy five Airbus airliners
HANOI, June 25 (Reuters) - Vietnam's national carrier Vietnam Airlines said on Monday it
intended to buy five narrowbody Airbus airliners as part of a five-year plan to expand its
fleet.
Nguyen Xuan Hien, general director of the state-run airline, told Reuters
negotiations on the terms would start soon.
They would be Vietnam's first-ever Airbus purchases.
``The purchase has been approved by the government in the plan to
develop the fleet up to 2005,'' Hien said. ``We are inviting our partner
(Airbus) to come for negotiations.''
He said the Airbus types could be the A319, A320 or A321, depending
on prices offered. Vietnam Airlines already operates Airbuses, but all
those in its current fleet are leased.
Airbus is a partnership of European Aeronautic Defence & Space Co NV
and BAE Systems Plc
The 124-passenger Airbus A319 has a list price of $45 million, the 150-passenger A320 $50 million and the 185-passenger
A321 $60 million.
The short-to medium-range aircraft can be powered by engines from CFM International or International Aero Engines.
The former is a joint venture between General Electric and France's state-owned Snecma, while the latter
involves United Technologies unit Pratt & Whitney and Rolls Royce.
Detailled talk needed
Asked when the contract might be sealed, Hien said it would depend on detailed negotiations between the two sides. He
declined to give an estimate of the amount of money Vietnam expected to have to invest in the purchases.
Hien spoke after a visit to the Paris Air Show during which aircraft manufacturers announced new airliner orders or intended
orders covering 286 aircraft worth around $15 billion.
In mid-May, a Vietnamese newspaper reported that under the government-approved plan, a total of 15 trillion dong ($1.01
billion) would be spent to expand the Vietnam Airlines fleet up to 2005. State media has said the airline plans to spend close to
$2 billion on expansion over the next 10 years.
In November last year, ahead of a visit by former U.S. President Bill Clinton, Vietnam Airlines signed a letter of intent with
Boeing Co for the purchase of three 777-200 ER widebody twin-engined aircraft which would cost $480
million.
In May, the Lao Dong (Labour) newspaper said the state would grant preferential loans, allow Vietnam Airlines to retain
corporate income tax payments, and issue bonds to raise the capital for the five-year expansion.
It said Vietnam Airlines planned to own 18 aircraft in 2005 and 34 in 2010, compared with a current six out of its fleet of 23
aircraft.
Vietnam Airlines currently operates five Boeing 767s, 10 Airbuses, two Fokkers and six ATRs. It owns four of the ATRs and
the two Fokkers.
Reuters - June 25, 2001.
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