A consortium of banks igned loans with Vietnam Airlines to finance the purchase of six short-haul aircraft from French manufacturer ATR, HSBC Bank (Vietnam) said.

It said Swiss bank Credit Suisse and Techcombank of Vietnam would also contribute to a 120-million-dollar package to finance the purchase of the ATR 72-500 turboprop planes. "With this financing package, Vietnam Airlines has assured the completion of its ATR fleet renewal and expansion plan, which aims to enhance our operating efficiency on short-haul routes," the news release quoted Pham Ngoc Minh, Vietnam Airlines' president and chief executive officer, as saying.

The state-run carrier signed a contract for the six aircraft in December. They are in addition to five ATR 72-500s already on order, ATR officials said at the time. Three of the planes are already in service with the airline, meaning the ATR 72-500 fleet will soon reach 14 in all. Mr Minh said in December that the 11 new planes, to be delivered this year and next, would help meet rising demand for short-haul routes and promote tourism, investment and trade in Vietnam and its surrounding region.

They will replace older ATR 72-200s.

Vietnam Airlines, which serves domestic, regional and international routes, expects by 2020 to triple its overall fleet of 50 aircraft, which includes Boeing 777 and Airbus A330 planes. Officials say the carrier is seeking to become one of the region's best airlines.

ATR, based in Toulouse, France, is a joint venture between Alenia Aeronautica and European aerospace giant EADS.