Vietnam''s first aircraft leasing firm makes its debut

The Viet Nam Aircraft Leasing Joint Stock Company (VALC), the first of its kind in the country, officially became operational on Monday 24 September. It has a chartered capital of $200 million and is co-founded by the Bank for Investment and Development of Viet Nam (BIDV), national flag carrier Vietnam Airlines, the Viet Nam Oil and Gas Corporation (PetroVietnam) and the Viet Nam Post and Telecommunications Group (VNPT).

The company will initially focus on five short-range inter-city routes - between Ho Chi Minh (HCM) City and Phu Quoc, Nha Trang and Lien Khuong, as well as Ha Noi to Dong Hoi and Ha Long.

VALC plans to negotiate with Airbus and Boeing before it selects suitable medium- and long-range planes that it can buy and lease to Vietnam Airlines and other domestic airlines.

The leasing firm''s objectives include promoting the trademark of Vietnam Airlines, increasing the number of Vietnam-owned planes, and reducing the country''s dependence on the international aircraft market.