Vietnamese government agrees to finance Vietnam Airlines' purchase of aircraft

Airline Industry Information, Dec 16, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

The Vietnamese government has reportedly endorsed a plan to finance part of a Vietnam Airlines deal to purchase 10 Airbus aircraft.

More talks have been requested by the government on funding the possible acquisition of four Boeing aircraft.

The government will finance up to 15% of the Airbus A321 contract, not yet signed, which is worth up to USD626.2m. The actual cost of the deal depends on final negotiations between Vietnam Airlines and the aircraft maker. The remaining funds are to come from export credit and commercial loans, reports The Associated Press.

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