Vietnam Airlines in $1.3B fleet expansion,by 2010

~ Le Vięt Nam, aujourd'hui. ~
The Vietnam News

Vietnam Airlines in $1.3B fleet expansion,by 2010

HANOI - The government has approved a plan by Vietnam Airlines to spend 15 trillion dong ($1=VND14586) over the next five years to enlarge its fleet, official media reported Monday. The airline plans to increase the number of planes it owns from the current six short-haul aircraft to 18 aircraft by 2005, including four long-haul planes, the Lao Dong trade union newspaper said. For the 10 years until 2010, the aircraft plans to spend 19 trillion dong to bring its aircraft total to 34, it said.

Vietnam Airlines now operates 23 aircraft - 10 Airbus A320s, five Boeing 767s, six short-haul ATR72s and two short-haul Fokkers - but it only owns four ATR72s and two Fokkers. Airline spokesman Nguyen Chan said the company has submitted the investment plan to the prime minister, but hasn't yet received official approval. Chan said Vietnam Airlines had revenues of VND8.254 trillion dong last year, 15% higher than its target. The airline had 2.9 million passengers last year, including 1.2 million international passengers, up 11% from the previous year.

The money for the fleet expansion plan will come from airline earnings, preferential government loans, bonds and income tax credits, the newspaper said.

The Associated Press - May 14, 2001.

Vietnam Airlines to sign pact with US airline

HANOI - Vietnam Airlines, the country's national carrier, will announce next month a code-sharing agreement with a US airline, a company official said on Tuesday. The arrangement, the first with a US airline, will facilitate easier connections between the two countries, Vice President of Commercial Operations Pham Ngoc Minh said.

Vietnam Airlines "will try to schedule our flights" to coincide with the U.S. airline's, so that passengers can transfer easily from one aircraft to another, he said. Minh declined to name the U.S. airline. But industry observers have said United Airlines is believed to have bid for the right to enter into a code-sharing agreement with Vietnam's national carrier. Vietnam and the United States are still negotiating a comprehensive bilateral aviation agreement that will allow airlines to fly directly between the two countries. Next month's deal will allow Vietnam Airlines and its partner to connect flights at a third destination, either in Europe or in Asia, Minh said.

Vietnam Airlines has already signed a code-sharing agreement with Taiwan's China Airlines, through which its passengers fly to Taipei, then board a China Airlines flight to the United States. No other code-sharing agreements currently connect Vietnam and the United States. Minh said that as part of the deal, the U.S. airline would "help us upgrade our systems ... to meet the regulations of the U.S." That is expected to make it easier for Vietnam Airlines to begin its own long-haul flights to the United States once a bilateral aviation agreement is signed.

The United States and Vietnam are also waiting to ratify a bilateral trade agreement that was signed last July. Once it is approved, the agreement is expected to increase demand for flights between the two countries.

The Associated Press - May 16, 2001.