Research on Government guarantee for Vietnam Airlines' aircraft purchase loan

Vietnam Airlines will buy 50 new narrow-body Airbus A320 NEO or Boeing 737 MAX aircraft to increase its fleet to 200 - 230 aircraft by 2040 - Photo: TUAN PHUNG

That is one of the conclusions of the Government Standing Committee on the project to purchase narrow-body aircraft from Vietnam Airlines, which was just issued by the Government Office after a meeting of the Government Standing Committee on this project, chaired by Prime Minister Pham Minh Chinh on May 14.

Specifically, based on the policy of implementing the narrow-body aircraft investment project of Vietnam Airlines approved by Deputy Prime Minister Ho Duc Phoc and the report of the leaders of the Ministry of Finance , the consensus of the Deputy Prime Ministers, the Government Standing Committee concluded:

Agree with the proposal of the Ministry of Finance on the implementation of Vietnam Airlines' narrow-body aircraft investment project with the following specific contents:

Agree that Vietnam Airlines applies the form of designated bidding through direct negotiation with the supplier who is the aircraft manufacturer under the authority prescribed in Article 15 of Decree No. 110/2011/ND-CP on the management of leasing and purchasing of aircraft, engines, spare parts and supplies and maintenance and repair services of aircraft, engines, spare parts and supplies.

Vietnam Airlines is responsible for preparing, submitting, appraising, approving investment projects and organizing the selection of aircraft suppliers by direct negotiation in accordance with the procedures specified in Article 6 of Decree No. 110/2011/ND-CP, ensuring the progress and effectiveness of the project, avoiding loss and waste.

Agree that Vietnam Airlines will both develop a project to invest in 50 narrow-body aircraft and negotiate with aircraft manufacturers according to regulations in Clause 2, Article 14 of Decree No. 110/2011/ND-CP.

Allow VNA to make a deposit (refundable) to keep flight schedules and other incentives before establishing a project or signing an aircraft purchase contract as prescribed in Clause 8, Article 16, Decree No. 110/2011/ND-CP.

The Ministry of Finance and Vietnam Airlines are fully responsible for the proposed content according to the provisions of law; absolutely do not allow loss, waste, negativity, or corruption to occur.

The Government Standing Committee assigned the Minister of Finance to work with Vietnam Airlines and relevant agencies based on current laws and national and ethnic interests to carefully study and propose a solution to handle Vietnam Airlines' proposal on the Government's guarantee for credit loans that the airline borrowed from foreign credit institutions, and report to the Government Standing Committee before May 25, 2025.

Previously, at the 2025 extraordinary general meeting of shareholders on the afternoon of May 15, Vietnam Airlines shareholders unanimously approved the project to purchase 50 narrow-body aircraft by 2032.

Accordingly, Vietnam Airlines will purchase 50 new narrow-body aircraft with less than 200 seats of the Airbus A320 NEO or Boeing B737 MAX series from the aircraft manufacturer and 10 spare engines.

The total investment for this aircraft purchase project is over 3.58 billion USD, equivalent to over 92,379 billion VND. Of which, Vietnam Airlines uses more than 1.66 billion USD of equity capital and borrows more than 1.92 billion USD.

According to plan, Vietnam Airlines will put into operation 50 newly purchased aircraft in the period 2030-2032.

TUAN PHUNG

Source: https://tuoitre.vn/nghien-cuu-viec-chinh-phu-bao-lanh-khoan-vay-mua-may-bay-cua-vietnam-airlines-20250519164834522.htm