The aviation insurance of the Vietnam Airlines this year will be covered by the PetroVietnam Insurance Company, the Vietnam National Aviation Insurance Company and Bao Viet Insurance Company. Photo thethaovanhoa.vn

HA NOI (Biz Hub) — Three Vietnamese companies have signed a contract to provide aviation insurance worth US$4 billion to national flag carrier Vietnam Airlines in 2014.

The companies are PetroVietnam Insurance Corporation (PVI), the Vietnam National Aviation Insurance Company (VNI) and Bao Viet Insurance Company.

According to the contract, the firms will provide all forms of aviation insurance, applicable worldwide, to ensure the safety of the 82 aircraft of Vietnam Airlines, including airplane hull insurance and war risk insurance.

Pham Ngoc Minh, the general director of Vietnam Airlines, told the Dau Tu newspaper: "VNI and Bao Viet Insurance Company have provided an insurance policy for the air carrier for several years. The participation of PVI this year will help enhance the capabilities of the service providers, in particular, the ability to provide emergency compensation to consumers."

Currently, Vietnam Airlines operates 91 flight routes to 21 domestic airports and 29 international airports. It operates 300 flights every day.

The airline expects to increase its fleet to 101 by 2015, and to 150 by 2020, by adding modern aircraft, such as the Airbus A350XWB and the Boeing 787-9 Dreamliner. — VNS