Vietnam Air Seeks Government Backing for 100-Plane Order

(Bloomberg) -- Vietnam Airlines JSC has submitted proposals for a 100-aircraft purchase to the government for approval, Chief Executive Officer Duong Tri Thanh said in an interview.

The Asian carrier has been examining proposals for the Airbus SE A320 and Boeing Co.’s 737 Max to meet the narrow-body requirement of 50 firm orders and 50 options, but hasn’t yet decided between the two, he said Tuesday at the Paris Air Show. Matters have been complicated by the grounding of the Max after two fatal crashes, he said.

Vietnam Air needs the aircraft for delivery from 2021 through 2025, though it might have to lease some aircraft initially because of a lack of available production slots amid record industry order backlogs, Thanh said.

The carrier also needs regional jets to replace its ATR turboprops, and is considering the Bombardier Inc. CRJ -- a program that may be sold to Japan’s Mitsubishi Heavy Industries -- and the Embraer SA ERJ series, the CEO said. Again, it could lease planes initially before buying about 10.

To contact the reporter on this story: Christopher Jasper in London at cjasper@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Susan Warren

©2019 Bloomberg L.P.