UPDATE 1-Vietnam to finalise Boeing, Airbus deals by yr end
(Adds details)
By Ho Binh Minh
HANOI, Oct 19 (Reuters) - Vietnam Airlines should speed up talks with Boeing (BA.N) to sign an agreement to buy 12 Boeing 787-8 Dreamliner aircraft before Nov. 16, the Vietnamese government in a statement said on Friday.
It also ordered the national flag carrier to finalise an agreement to buy 10 Airbus (EAD.PA) A350-900XWB passenger jets and 20 single-aisle A321 jets before Dec. 21.
The state-run airline signed draft agreements with the aircraft makers on the purchases earlier this month.
The government said Vietnam Airlines did not have to go through a tender process for the purchases.
It said the Finance Ministry would provide guarantees for any funds used to buy airplanes and engines by Vietnam Airlines and also by the newly established Vietnam Aircraft Leasing Company, in which the airline has more than 10 percent of stake.
The government also agreed to allocate 904 billion dong ($56 million) for the purchase of four Boeing 787-8 planes for which Vietnam Airlines signed a contract with the U.S. planemaker in 2005 for delivery in 2009 and 2010.
Early this month, the airline signed a memorandum of understanding for the purchase of 12 Boeing 787-8s in a deal valued by Boeing at $1.9 billion based on catalogue prices.
The first plane would be delivered in 2015.
The carrier also signed a draft agreement for 10 A350 jets during a visit to Paris by Vietnamese Prime Minister Nguyen Tan Dung.
The deals are worth $3.8 billion at list prices, including $2.4 billion for the crucial A350 order where the competition between Boeing and Airbus is at its fiercest.
The 787 and 350 are competing head to head in one of the most promising parts of the aviation market, though Boeing has a five-year lead and a strong lead in sales over its rival.
Vietnam Airlines would buy a total of 43 aircraft during the 2006-2020 period, including 20 A321s, eight Boeing 787-8s, five ATR-72s and 10 A350s, the government statement said.
In another development, the government asked the Finance Ministry to implement a project to partially privatise Vietnam Airlines. It gave no timeframe.
The airline aimed to expand its fleet to have 60 planes in 2010, 85 in 2015 and 107 in 2020, the government statement said. ($1=16,165 dong)
