Banks sponsor US$7.2 million Vietnam Airlines project

The PetroVietnam Finance Joint Stock Corporation (PVFC) and Cathay United Bank (CUB) have pledged to provide credit worth US$7.2 million for the national flag carrier, Vietnam Airlines.

Vietnam Airlines will receive the seven-year credit loan from the two financial institutions to purchase Airbus 321 standby motors under its investment project to buy ten A321 aircraft.

The Vietnam Airlines project is aimed at increasing its fleet to 115 aircraft by 2015 and 170 within the following five years. It plans to invest primarily in Boeing 777, Airbus A330, A321/320, A350XWB and Boeing 787-9 aircraft with updated energy efficiency and environmentally-friendly technology.

Established in 2000, the PVFC now has VND6,000 billion in chartered capital and total assets worth nearly VND90,000 billion.

CUB, the former United World Chinese Commercial Bank, was set up in 1975 and has total assets of around US$55 billion. It has been rated the most effective bank in Taiwan.

Earlier, Vietnam Airlines was also granted a credit loan in May 2011 worth more than US$7 million to buy standby motors for A321 planes.