January 15, 2008 -- HANOI, Jan 15, Asia Pulse - US aircraft manufacturing giant Boeing has finalised contracts worth US$2 billion to sell 12 Boeing B787-8 Dreamliners to Vietnam Airlines and the Vietnam Aircraft Leasing Company (VALC).

Vietnam Airlines will take four of the jumbo jets, while the country's first and only aircraft leasing firm, VALC, will purchase the remaining eight aircraft to lease them back to Vietnam Airlines.

The enlarged fleet represents the airlines effort to improve its service, which has reportedly been adversely affected by the use of older aircraft. Vietnam Airlines plans to buy almost 50 new planes in the next 10 years while Pacific Airlines will add 30 more planes.

There's a glitch, though. There isn't enough space on the tarmac to accommodate them. Although new terminals have been added to major airports throughout the country, there is no room for the jumbo jets.

Many foreign airlines have already expressed concern about the impending shortage of ground space and the insufficient passenger and cargo loading capacities of international airports in Vietnam.

With a yearly passenger capacity of only four million, Noi Bai International Airport in Hanoi is a prime example of an airport that needs major expansion. There is barely any room for passengers and their relatives during check-in time at peak hours when five or more flights are scheduled for the same period. A similar situation is seen when multiple flights arrive. Passengers may have to wait for more than an hour to claim baggage. According to top officials of the Civil Aviation Administration, these problems will persist for at least two more years.

Construction of a new terminal to handle between 8 and 10 million passengers yearly at Noi Bai Airport started this year. If all goes smoothly, the new terminal will open in 2010. Tan Son Nhat Airport in HCM City has a yearly capacity of 16 million passengers, thanks to the opening of a new international terminal. Despite the recent addition, the airport is already operating at full capacity.

Source: Asia Pulse