December 29, 2014 / 4:08 AM / 5 years ago

Vietnam Airlines signs $6 billion 2015-16 insurance coverage contract

Vietnam Airlines airplanes (rear) are seen at the new terminal two wing at Noi Bai international airport in Hanoi December 20, 2014. REUTERS/Kham

HANOI (Reuters) - National carrier Vietnam Airlines Co Ltd (VNA) said it has signed a contract to insure its aircraft and those of two subsidiaries for the next two years for $6 billion (3.9 billion pounds).

PVI Holdings led the 2015-16 insurance contract, joined by Vietnam National Aviation Insurance Co and Baoviet Holdings, VNA and PVI said in a statement late last week.

The contract provides global coverage for the fleets of Vietnam Airlines and subsidiaries Jetstar Pacific Airlines and Vietnam Air Services, the parties said in the statement without disclosing terms.

The coverage compared with the $4 billion for 2014, the parties said without elaborating on reasons for the difference.

Vietnam Airlines, valued at $1.5 billion, raised 1.09 trillion dong (33 million pounds) by selling a 3.47 percent stake last month in an initial public offering (IPO) which attracted few foreign investors.

The IPO was part of an economy-stimulating plan of “equitisation”, a term the government uses for the privatisation of 432 state-owned enterprises.

Reporting by Mai Nguyen

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