Boeing Co expects to finalise a contract with Vietnam Airlines in the first quarter of 2005 for four 7E7 planes, which are worth around $500 million at list price. Vietnam Airlines' President and CEO Nguyen Xuan Hien said earlier this month he wanted his unlisted carrier to be among the first customers for the 7E7 Dreamliner jets to secure preferential treatment.

Boeing said Vietnam Air was the eighth customer committed for its mid-sized, twin-aisle jet which is capable of travelling just under the speed of sound and will use 20 percent less fuel than other similar sized planes for comparable flights.

"Boeing and Vietnam Airlines expect to finalise the 7E7 order in the first quarter of 2005," the airplane manufacturer said in a statement posted on its Web site (www.boeing.com) on Thursday.

It said Vietnam Airlines has yet to pick the engines.

State media this week said the Vietnamese government has approved the carrier depositing $560,000 for the contract.

Airline officials declined comment.

Vietnam Airlines has said its 2004 revenues jumped 48 percent to 17.39 trillion dong ($1.1 billion), helped by a rise in tourist arrivals and cargo transport. It has targeted 2005 revenues of 19 trillion dong ($1.21 billion), up 9.3 percent.

Copyright Reuters, 2005