Vietnam to buy 10 Airbus planes
HANOI - Vietnam has approved plans by its national carrier to buy 10 Airbus narrow-body A321 aircraft for $625.2 million (330 million pounds), a government official has said, as the airline expands its fleet to meet rising travel demand. The official told Reuters on Friday a directive on the purchase by Vietnam Airlines was signed on Tuesday. He declined to give further details.
The Thanh Nien (Young People) newspaper on Friday cited the directive as saying the airline would get 15 percent of the funds from the state budget and the remaining 85 percent from soft loans and commercial loans guaranteed by the finance ministry. "The government has agreed for us to buy the 10 A321 planes," said Nguyen Chan, spokesman for unlisted Vietnam Airlines, adding a memorandum of understanding with Airbus had been signed during an Asia-Europe (ASEM) summit in Hanoi last month.
The media report said Airbus will deliver the first plane in early 2006 and the second in July 2006. Four more planes would be delivered in 2007 and two each in 2008 and 2009. Airbus, 80 percent owned by European aerospace and defence company EADS and 20 percent by BAE Systems, has said the aircraft package was worth about $750 million based on catalogue prices.
Vietnam Airlines plans to double its fleet to around 70 planes by 2010 as more people visit the Southeast Asian state. Nguyen Chan said the government also agreed in principle for the airline to buy four Boeing 7E7-8s. Vietnam Airline's chief Nguyen Xuan Hien has said the Boeing's would be delivered in 2008.
Vietnam Airlines has 13 Airbus A320s and A321s, four Boeing 777s, seven 767-300s, eight ATR-72s and two Fokker 70s. ATR is owned by EADS and Italy's Alenia. In August, Boeing said it hoped to sell Vietnam Airlines 10-15 of its futuristic 7E7 Dreamliner jets.
Reuters - November 26, 2004
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