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The Vietnam News

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[Year 2001]

Boeing close to signing B-777 deal with Vietnam Airlines

HANOI - US aircraft maker Boeing says it is close to clinching a lucrative deal with Vietnam Airlines for four Boeing 777-200ERs. "Out of respect for customers, we do not comment on conclusions of sales until an official announcement is made by the carrier," Boeing's sales director for Asia-Pacific, Chris Flint, told Vietnam News Agency.

"But we are now at an advanced stage of negotiations and I believe that it could be finalised soon. Boeing and Vietnam Airlines experts have worked out a complete package for operation, maintenance and support activities so Vietnam Airlines can operate the 777 aircraft effectively once they are inducted. "We would be very pleased to have Vietnam Airlines join the ranks of world-class carriers flying these planes," he said. The carrier signed a letter of intent with Boeing last year during former President Bill Clinton's visit to Vietnam. While it promised to purchase three long-haul aircraft, the company is hoping to sell four.

Flint acknowledged that Boeing will have continuing competition with its arch rival Airbus Industrie in Vietnam as well as globally, especially in the 777 category - both the Boeing 777 and the Airbus A340 are medium-sized aircraft that serve non-stop long - and ultra-long-range routes. But Vietnam Airlines has also signed a letter of intent with Airbus in September for the purchase of five A320s. But Boeing has its sights set on the newly signed Bilateral Trade Agreement (BTA) between Vietnam and the US. It is hoping it would usher in a new trade era that would benefit its business here. "Tourism and trade will grow in Vietnam and we really want to participate in that growth.

"We want to be active participants in enhancing the economy and global status of Vietnam. We are also proud to become one of the first US companies to bring the wonderful people, products and culture of Vietnam to the world under the landmark BTA," said Flint. He said Boeing was the one of the leading US companies that lobbied for the lifting of the trade embargo, waiver of the Jackson-Vanik amendment, and the negotiation, conclusion and approval of the BTA. The company also claims to back the early signing of a bilateral aviation agreement facilitating the movement of passengers and cargo between the two countries. He said that Boeing is committed to be a good corporate citizen and has provided relief funds for storm and flood victims, mine clearance, and other worthy causes. "The success of the cooperation between Boeing and Vietnam Airlines will surely lure investors and businessmen from the US, and other countries, to come and do business in Vietnam."

Flint agreed that the attacks in the US have negatively affected international air transport forcing many airlines to up safety measures like bolstering pre - and in-flight security. "However, the latest passenger survey conducted by our company showed that passengers still feel safe with air travel so I reasonably expect a recovery in the near future, Flint said." But he conceded that the impact on Vietnam Airlines may not be as severe as some others because its exposure to the US market is modest, but its operations may be indirectly affected.

"Fortunately, Vietnam has been ranked the safest country in the Asia-Pacific region by an independent international organisation (Political&Economic Risk Consultancy - PERC, Hong Kong). "This will help Vietnam attract investors and tourists, providing more opportunities for Vietnam Airlines, Flint said"

Vietnam News Agency - December 5, 2001.