Calyon Lends Vietnam Airlines for Aircraft Purchase
Calyon Corporate and Investment Bank, run by France’s biggest retail bank, Credit Agricole, December 14 signed an agreement to finance over $800 million for Vietnam Airlines' purchase of 10 Airbus narrow-body A321 aircraft.
The planes will be delivered to the unlisted carrier between 2007 and 2009, bringing the number of Airbus 321s in Vietnam Airlines' fleet to 16.
Pham Ngoc Minh, Vietnam Airlines deputy general director, said the purchase of the Airbus planes has been the carrier's largest capital deal with the longest loan term of 12 years and the guarantee of the Finance Ministry.
Vietnam Airlines signed a deal to buy the 10 Airbus aircraft worth about $750 million based on catalogue prices in December 2004.
Vietnam Airlines said it now operates ten B777s, ten A320s, six A321s, nine ATR72s, and two Fokker 70 planes, as well as one A330-300 plane.
Last month the airline said its 38-strong fleet would be expanded with four Boeing 787-8s, 10 A321s, five ATR-72s between 2007 and 2010.
In 2005, Vietnam Airlines carried 6 million passengers, earning $922 million. This year the number of passengers is expected to increase 12 per cent over 2005 to earn revenue of over $1 billion.
Reportedly, Calyon and Société Generate recently syndicated loans worth $93 million for the construction of the Phu My Bridge across the Saigon River.
(Local sources)
Vietnamese
