Vietnam Airlines is considering plans that would double the size of its newly ordered fleet of Boeing 777s to eight aircraft by either converting options or taking four additional aircraft on lease.

The airline in the meantime plans to firm up an order for five more Airbus A321s in the first quarter of next year.

Vietnam Airlines is finalising US Eximbank finance for its announced order for four 777-200ERs. Based on the terms and conditions obtained, it will decide how to finance any additional aircraft subject to state approval. The Boeing deal is understood to include an undisclosed number of options, while General Electric and International Lease Finance (ILFC) are looking to place another four 777s with Vietnam Airlines.

Boeing has given Vietnam Airlines until mid-January to select an engine for the four aircraft, the first of which is due for delivery in September 2003.

A key factor in its decision will be whether the airline opts for the 777-200LR long range version, which unlike the -200ER is only offered with the GE GE90. Also competing for the engine order is the Pratt & Whitney PW4000 and Rolls-Royce Trent 800.

The airline will only need the ultra-long-range -200LR version of the 777, rather than more -200ERs, if it wants to operate non-stop from Hanoi and Ho Chi Minh to the USA. The airline has so far not revealed any plans other than its hopes to secure regulatory approval for a codeshare with American Airlines by mid-2002.

Hanoi, in addition to approving the purchase of four 777s, has also given Vietnam Airlines the greenlight to acquire five more A321s. The aircraft will replace two A321s on interim lease from ILFC and supplement 10 A320s on separate long term 10-year lease.

Source: Flight International