A representative of Tiffany and Son (TiffSon), told VnExpress Tuesday that the Civil Aviation Authority of Vietnam (CAAV) has rejected its offer of VND3 billion ($129,000) worth of beer, wine and confectionery for a Boeing-727 aircraft that’s been abandoned for 12 years at the Noi Bai International Airport.

There are no legal grounds for exchanging the aircraft for non-cash assets, the CAAV told Hanoi-based TiffSon, a company that provides inventory solutions through bartering goods and services.

The TiffSon representative, who did not want to be named, said that the company is trying to find out what legal requirements have to be met to strike a barter deal for the aircraft. TiffSon is the only private company that has submitted a written proposal for such a trade, the representative said.

The company had said earlier that it was acting as an intermediary for business partners who are planning to convert the aircraft into a restaurant, entertainment facility and advertising space.

The CAAV had said that many businesses have bid for the aircraft, but it has not been able to sell it because relevant agencies have not yet made a proper valuation.

The Boeing 727-200, which belonged to the Royal Khmer Airlines, had run into technical problems after carrying passengers to Noi Bai airport. It did not meet safety conditions to return to Siem Reap, and has been parked at Noi Bai since May 1, 2007.

The Cambodian airline went bankrupt soon after and left the plane in Hanoi, because it would cost too much to repair. Cambodian authorities have subsequently removed the aircraft from its national registry, allowing the CAAV to deal with the asset in accordance with Vietnamese law.

The CAAV has proposed two options for handling the abandoned aircraft by either auctioning it or handing it over to the Airports Corporation of Vietnam, the state-owned airports operator. Previously, the Vietnam Aviation Academy had also asked for the Boeing 727 to be used as a teaching aid, but no decision was made.