First aircraft leasing firm makes debut

VNGOP - The Việt Nam Aircraft Leasing Joint Stock Company (VALC), which is the first of its kind in the country, officially became operational on September 24.

September 25, 2007 7:09 AM GMT+7

A Vietnamese flag craft

VALC has a chartered capital of US$ 200 million and is co -founded by the Bank for Investment and Development of Việt Nam (BIDV), the national flag carrier Vietnam Airlines, the Việt Nam Oil and Gas Corporation (PetroVietnam) and the Việt Nam Post and Telecommunication Group (VNPT).

The company will initially focus on five short-range routes such as Hồ Chí Minh City-Phú Quốc, HCMC-Nha Trang, HCMC-Liên Khương, Hà Nội-Đồng Hới and Hà Nội-Hạ Long.

VALC plans to negotiate with Airbus and Boeing, the world's two largest aircraft producers, to buy their medium- and long-range planes and lease them to Vietnam Airlines or other domestic airlines.

The leasing firm will help promote the trademark of Vietnam Airlines, increase the number of Việt Nam-owned planes and reduce the country's dependence on international aircraft market, said Trần Bắc Hà, BIDV General Director.

(Source: VNA)