Vietnam Airlines forms agreement for aircraft financing

Airline Industry Information, May 27, 2004

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

Vietnam Airlines has formed a financing contract with Dutch Bank ABN Amro and France's Natexis Bangues Populaires for aircraft purchases.

The contract covers USD150m of financing for the purchase of three Airbus A321-200 aircraft. The three aircraft are part of a five-jet deal formed in October 2002 between Vietnam Airlines and Airbus. Vietnam Airlines will borrow 85% of the cost of the aircraft.

The new aircraft are part of the carrier's fleet and route expansion programme.

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