VIETNAM AIR MULLS ORDER OF 100 PLANES
Carrier plans to replace aging fleet and prepare for future flights to California
VIETNAM Airlines is considering an order of 50 to 100 Boeing Co’s 737 Max planes this year to replace its aging fleet of Airbus SE aircraft and may also buy long-range jets in preparation for flights to California.
The new aircraft will be for delivery between next year and 2030, said chief executive officer of the state-owned carrier Duong Tri Thanh in an interview here.
While he didn’t specify which Max model the carrier plans to buy, based on list prices of the popular Max 8, the order would be valued at about US$6.1 billion (RM24.8 billion) to US$12.2 billion before customary discounts.
“It will be an opportunity for Vietnam Airlines to invite competition between the aircraft manufacturers, mainly Airbus and Boeing,” said Thanh.
“The final plan will be submitted to the government. We expect something to happen this year.”
The airline is seizing expanded travel demand presented by Vietnam’s growing economy and United States regulatory approval this month for its air-safety system, allowing carriers in the country to fly to the US.
The carrier is also considering a purchase of at least two widebody planes — Boeing 777x or Airbus A350-1000 — to make its planned US services commercially viable, said Thanh.
Vietnam Airlines intends to begin flying from the nation’s commercial centre of Ho Chi Minh City to Los Angeles or San Francisco, both home to a large Vietnamese-American population, in 2020, said Thanh.
Initially, the flights would include possible stops in Japan, Taiwan or South Korea before non-stop service begins in 2022, he said.
Given the distance and very tough competition, Vietnam Airlines expects to remain unprofitable on the Vietnam-California route for five to 10 years and will need government subsidies, said Thanh.