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| An Airbus 320neo aircraft. |
The Government Office has just issued Notice No. 236/TB - VPCP announcing the conclusion of the Government Standing Committee on the narrow-body aircraft investment project of Vietnam Airlines Corporation (Vietnam Airlines, stock code HVN).
The meeting of the Government Standing Committee on Vietnam Airlines ' narrow-body aircraft investment project was held on May 14, chaired by Prime Minister Pham Minh Chinh.
Accordingly, the Government Standing Committee has agreed to the proposal of the Ministry of Finance to implement the Vietnam Airlines narrow-body aircraft investment project according to the policy approved by Deputy Prime Minister Ho Duc Phoc in Document No. 3695/VPCPCN dated April 28, 2025.
Specifically, the Government Standing Committee agreed that Vietnam Airlines should both develop an investment project for 50 narrow-body aircraft and negotiate with aircraft manufacturers according to regulations in Clause 2, Article 14 of Decree No. 110/2011/ND-CP.
on the management of leasing and purchasing activities of aircraft, engines, spare parts and supplies and maintenance and repair services of aircraft, engines, spare parts and supplies.
The Government Standing Committee also allows Vietnam Airlines 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 Minister of Finance is assigned to work with Vietnam Airlines to agree on the Government's guarantee for Vietnam Airlines' loans from foreign credit institutions, and report back to the Government Standing Committee before May 25, 2025,” Notice No. 236 stated.
It is known that the 2025 Extraordinary General Meeting of Shareholders of Vietnam Airlines has just approved the investment policy of 50 narrow-body aircraft project.
Specifically, Vietnam Airlines will purchase 50 new narrow-body aircraft with less than 200 seats (>160 seats) equivalent to the configuration of the A320Neo/ Boeing737Max aircraft (including wing-mounted engines, additional equipment) and 10 spare engines.
This project with a total investment of 3.587 billion USD (equivalent to 92,379,848 billion VND) will be implemented from 2025 to 2050, in which the aircraft will be handed over by suppliers to Vietnam Airlines for operation in the period from 2030 to 2032.
Vietnam Airlines plans to use a combination of its own capital and capital mobilized from outside/sale and leaseback (SLB) of aircraft to finance the investment project of 50 narrow-body aircraft.
Accordingly, the airline will use equity capital of about 1.6 billion USD (equivalent to 43,000 billion VND), accounting for 46.4% of the total investment of the Project to purchase aircraft, purchase spare engines and pay other expenses.
The loan capital with a total value of 1.9 billion USD (equivalent to 49,400 billion VND) will be used by Vietnam Airlines to pay the prepayments to the manufacturer and pay the remaining purchase price of the aircraft at the time of receiving the aircraft.
In addition, to reduce financial pressure and ensure capital balance, Vietnam Airlines will apply the SLB structure for 25 aircraft, expected to earn 1.6 billion USD (equivalent to about 42,000 billion VND).
Currently, the demand for aircraft in the world is increasing. The backlog of orders from Airbus and Boeing has reached thousands of aircraft. In case of deposit at the beginning of 2025, the fastest time is after 5 years, the manufacturer can hand over the aircraft to the airline.
Therefore, to ensure the implementation progress to meet the urgency of the Project to invest in 50 narrow-body aircraft, Vietnam Airlines once proposed to allow the Corporation to apply the bidding method through direct negotiation with the supplier, which is the aircraft manufacturer.
Vietnam Airlines also proposed to allow the airline to both build a project to invest in 50 narrow-body aircraft and negotiate with two aircraft manufacturers, Airbus and Boeing, and to be allowed to make a deposit (with refund) to keep the aircraft schedule and other incentives before establishing the project or signing the aircraft purchase contract.
Source: https://baodautu.vn/y-kien-cua-thuong-truc-chinh-phu-ve-du-an-50-tau-bay-than-hep-cua-vietnam-airlines-d285728.html
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