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The Vietnam News

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Vietnam approves purchase of 10 Airbus planes, Boeing talks

HANOI : Vietnam Airlines has been given governmental approval to buy 10 Airbus A321 planes and to continue talks for four Boeing 7E7s as part of an ambitious expansion programme. Prime Minister Phan Van Khai signed the document approving the plans on Thursday, officials said.

"With the prime minister's approval, we will start negotiating the price to buy Airbus planes as soon as possible," Nguyen Chan, Vietnam Airlines spokesman told AFP. "However, the date for the contract depends on the negotiation results from both sides," he said. "We will have to work more with Boeing to see how we can proceed with the intention of buying its B7E7-8."

Nobody could be contacted at Airbus on Saturday but Boeing confirmed the move to buy four 7E7 Dreamliner aircraft. "Boeing has proposed a feasibility study to the purchase of four 7E7. The government gave the instruction to go forward and to make the deal happen," Boeing's sales director for the Asia-Pacific, Christopher Flint, told AFP by telephone from the United States.

Vietnam Airlines announced last January plans to double its fleet by 2010 in a bid to establish itself as a major player in the regional aviation industry. By then, the state-run Vietnam Airlines will own a total of 73 planes, according to official media in the communist country. Over the past year, the flagship, which flies to about 25 international destinations, has inaugurated a number of new routes and has earmarked further expansion, including flights to the United States by the end of 2005.

Last October, the company signed a 750-million dollar memorandum of agreement with Airbus to purchase 10 A321 aircraft during the visit to Vietnam of French President Jacques Chirac.

Agence France Presse - 20 Novembvre 2004