Signs Contract For 10 A350 XWBs, 20 More A321 Narrowbodies

This week, Vietnam Airlines firmed up an earlier commitment for 10 A350-900 XWBs, and also signed for 10 more A321s. The announcement follows the signing of a Memorandum of Understanding (MOU) for the aircraft on October 1, in the presence of Nguyen Tan Dung, Prime Minister of Vietnam during his state visit to France.

An additional 10 A321s covered under the MOU have now been confirmed as firm orders for the new Vietnam Aircraft Leasing Company, in which Vietnam Airlines is a major shareholder. The respective contracts were signed in Hanoi Thursday by Mr Pham Ngoc Minh, Chief Executive Officer of Vietnam Airlines, and Mr Tran Long, Chief Executive Officer of Vietnam Aircraft Leasing Company, with John Leahy, Chief Operating Officer - Customers.

Vietnam Airlines currently operates 10 A320s, 11 A321s and three A330s (two -200s and one -300) on an extensive regional and domestic network. Four previously ordered A321s are still to be delivered. The airline also has 12 Boeing 787s -- the direct competitor to the A350 XWB -- on order. The October MOU called for 20 A321s, twice the number the airline signed for Thursday.

As ANN reported in October, when the MOU was signed, many analysts suggested Vietnam's move to purchase both aircraft was a political decision, as much as an economic one.

Though it's hardly uncommon for airlines to split orders between the two rival planemakers, those watching this deal point out Vietnam has been seeking broad international support for its bid to gain a two-year sear on the UN Security Council... making it a good idea for the country to appeal to both US and European manufacturers.

Understandably, Vietnam Airlines Chairman Nguyen Sy Hung chose to emphasize economic -- and not political -- reasons for the airline's choice in aircraft.

"We thoroughly reviewed the A350 XWB program, and we are very confident that this aircraft will set new standards of passenger comfort, operating economics and low emissions in our growing long-haul markets. The size of the A350-900 XWB responds very well to our expected traffic growth over the next decade," said Nguyen. "Our A330s already provide us with an excellent level of economics combined with superior passenger appeal. The A350 XWB will further consolidate our successful growth and long term development into the future."

"Vietnam Airlines has been a strong partner for Airbus in Asia for many years and I am delighted that this relationship is now further strengthened with the airline becoming a strategic customer for the A350 XWB in the region," said John Leahy, Airbus Chief Operating Officer - Customers. "With orders for A321s from both Vietnam Airlines and Vietnam Aircraft Leasing Company, Airbus is proud to be playing a central role in the continued modernization of the rapidly developing Vietnamese air transport industry."

FMI: www.vietnamairlines.com, www.airbus.com