Vietnamese Giants Pilot Aircraft Leasing Firm

Four Vietnamese giants comprising BIDV, Vietnam Airlines, PetroVietnam and VNPT are scheming for the establishment of an aircraft chartering firm, the first and only 100 per cent Vietnamese owned company.

 

Tran Bac Ha, Director General of the Bank for Investment and Development of Vietnam (BIDV), said that the Government had agreed in principle to the project on setting up an aircraft chartering company. The detailed project has been completed and submitted to the Prime Minister for final approval.

 

It is likely that the Government will instruct the joint stock company to purchase four medium-range Boeing 787s. The first aircraft in the deal is expected to arrive in 2015.

 

The market for aircraft leasing proves to have a lot of potential in Vietnam. While operational airlines have to serve more clients they are still facing big financial difficulties which hinder them from buying more aircrafts.

 

Mr Ha said that one of the clients that would charter aircrafts would be Vietnam Airlines, the national flag air carrier.

 

Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times) said the sum of money that BIDV will pay to implement the project may reach US$800 million.

 

Prior to that, the Prime Minister released a decision, allowing the Ministry of Finance to guarantee for the deals of purchasing two Airbus A321s, expected to be delivered in July and November 2007.

 

In the latest announcement, Vietnam Airlines said it had put off the launch of direct flights to the US until next year since it was still unprepared. Aircraft shortage and strict regulation imposed by the US’s aviation administration are the main reasons hindering the airline’s plan. (VietNamNet)