Vietnam Airlines to sell, lease back four aircraft hinh anh 1Illustrative image (Source: VNA)

Hanoi (VNA) – Vietnam Airlines said that it plans to sell or lease back four new aircraft which the corporation will receive in 2017 to ease the pressure on the due-debt-over-ownership-capital ratio and boost liquidity.

Aircraft to be sold or leased back include one Boeing B787-9 and three Airbus A350.

According to Chairman of the Board of Directors Pham Ngoc Minh, the plan still ensures Vietnam Airlines’ intention of developing its fleet while reducing its dependence on loans, particularly Government -sponsored loans.

The sale and leaseback of the four planes would help Vietnam Airlines cut its original capital need for buying aircraft by 544 million USD and reduce the debt-over-ownership-capital ratio from four times on December 31, 2016, to 3.2 times on December 31, 2017 and three times by the end of 2018, said Minh.

As of December 31, 2016, Vietnam Airlines owned a fleet of 86 aircraft with average age of 5.7 years.

Vietnam Airlines will continue upgrading its fleet by getting rid of Fokker and ATR72 planes and replacing its 18 body-wide Boeing 777 planes and Airbus A330 with 33 new-generation Boeing 787-9 and Airbus A350 planes by 2019.-VNA