National flag carrier talks down Airbus finance rumours

July 28, 2003 | 17:43

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Vietnam Airlines is playing down rumours it has selected four French banks to finance its $270-million deal to buy five Airbus A321 aircraft.

“Things have not been clarified yet and we have not decided who will be the leading financiers,” he said.
Vietnam Airlines signed the deal to buy the five A321s late last year during President Tran Duc Luong’s trip to France.
French banks Credit Lyonnais, BNP Paribas, Credit Agricole Indosuez and Natexis Bank were later rumoured to have secured financing rights for the deal.
“But, the deal was still open to all banks regardless of nationality,” Hien said.
Smaller loans would also be provided by local state-owned banks, he said.
An official from Credit Lyonnais said the French banks including his would partially finance three of the five aircraft.
“We sent our contract offer to Vietnam Airlines last month and are awaiting the final result, which we are told will come in September this year,” he said.
But, Hien said the final results would be not be released until December because of delays in the order. The planes’ delivery date has been moved forward from this November to next July.
“We don’t have time to finish the deal before November so the financing contracts will be made public in early December of this year,” Hien said.
Britain’s ECGD, Germany’s Hermes and France’s COFACE are to guarantee 85 per cent of the loans, according to industry sources. The new planes are to be deployed on domestic and Asian routes alongside the airline’s 12 other Airbus planes – 10 A320s and two A321s.
Vietnam Airlines CEO Nguyen Xuan Hien said: “The A321s will enable Vietnam Airlines to continue to expand its network and address the needs of a rapidly growing Vietnamese market.”
The national flag carrier’s fleet expansion is part of a broader move to increase destinations and passenger traffic.

By Xuan Son

vir.com.vn

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