Vietnam Airlines Plans Significant Renewal Plans

Vietnam Airlines is seeking up to a 20% equity investment from "strategic partners" and will sell off several existing older aircraft as part of a plan to upgrade its fleet and brand.

The Vietnam flag carrier said the equity sell-off could raise some VND6.3 trillion (US$300 million), but the airline also plans to sell off or return some older aircraft to raise more working capital.

The carrier plans to sell off three ATR 72-500s used for domestic routes, plus two Boeing 777-200ERs that it said "can no longer ensure the high standard of service required to keep Vietnam Airlines competitive." It will also return two Airbus A330s to the lessor.

With this year's planned delivery of 12 new aircraft -- three Airbus A321s, four A350s, and five 787s -- the airline aims to have 80 aircraft in its renewed fleet by the end of 2015.

The airlines said it will invest VND21 trillion into new aircraft from 2015. The first of 19 Boeing 787-9s are set for delivery in May, which will be followed by the first of 14 Airbus A350s later in the year.

wcarn