Vietnam signs letter of intent for five Airbuses
HANOI - Vietnam's state-run
national flag carrier, Vietnam Airlines, has
signed a letter of intent to buy five Airbus
A-320 airliners from Airbus SAS, the Vietnam
News Agency (VNA) reported.
The agreement was signed in Hanoi on
Sunday in the presence of France's Transport
Minister Jean-Claude Gayssot, the official
agency said in a report late on the same day.
They will be Vietnam's first ever Airbus
purchases.
Toulouse-based Airbus is owned by European
Aeronautic, Defence & Space Co NV and BAE
Systems Plc.
Vietnam Airlines and Airbus also concluded contracts to support the former's air services as well as its
maintenance of ten A-320s, VNA said.
It said Airbus would help in training 20 pilots and transfer maintenance technology with the help of a
French government loan of 22 million French francs ($3.06 million).
Vietnam Airlines said in June it intended to buy five Airbus airliners as part of a five-year plan to expand
its fleet, but gave no indication of the purchase prices.
The 150-passenger A320 has a list price of $50 million and 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.
Vietnam already operates 10 leased Airbuses as well as five Boeing 767s, two Fokkers and six ATRs. It
owns four of the ATRs and the two Fokkers.
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 then 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 at a
cost of $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.
Reuters - September 2, 2001.
|