Venezuela Negotiating with Airbus for 737 Replacements

Venezuela is negotiating with France's Airbus Industrie, the world's No. 2 commercial aircraft maker, to buy a $34 million A319 CJ aircraft to replace the president's aging Boeing 737, El Nacional newspaper reported from caracas last month.

The cost includes $8 million for the installation of optional equipment. Airbus said Venezuela had not made a final decision concerning the purchase, the paper reported.

If the deal is approved, Venezuela will most likely finance the cost of the plane through a loan from European bank.

President Hugo Chavez has reportedly worn out his current plane with recent tours of Asia and Organization of Petroleum Exporting Countries, the newspaper said.