Vietnam Airlines faces $ 650 million in losses

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The national carrier Vietnam Airlines could register losses of more than half a billion dollars this year, revealed its general assembly.

Shareholders of Vietnam Airlines Corporation on Monday approved the business and production plan for 2020, which noted that consolidated losses will not exceed 15.17 trillion dong ($ 650 million).

The statement was released at the shareholders meeting held in Hanoi on Monday.

Vietnam Airlines aims to gradually restore production and business activities with the goal of carrying 14.5 million passengers, achieving a consolidated turnover of nearly 40.6 trillion dong.

President Pham Ngoc Minh said the company was grappling with the global aviation crisis caused by the Covid-19 pandemic but was successful in maintaining its business and fulfilling its national functions.

“We always see this as a challenge to overcome, find new opportunities, new ways, continue to assert the position of the leading national airline in the aviation sector, as well as the national brand mission in the world of business, ”he said.

Since the start of the pandemic, he said, Vietnam Airlines has implemented many emergency response solutions, focusing on adjusting production and commercial scale, minimizing costs, reorganization of work and adjustment of wage and income policies.

Faced with the decrease in the number of passengers on national and international routes, Vietnam Airlines has stepped up freight transport, he added.

“We are taking advantage of government and partner support to maintain production and business activities, overcome the crisis and prepare resources for recovery and development. We have cut more than five trillion dong thanks to a proactive economy, ”said Minh.

Nguyen Hong Hien, director of the state capital management committee in the enterprise technology and infrastructure department, said the committee recognizes the efforts of the board of directors and employees in many ways.

“We expect shareholders, especially strategic shareholders and state agencies, to work together to help Vietnam Airlines overcome difficulties and crises, continuing to grow and increase the value of the investment of companies. shareholders, ”Hien said.

The company also announced that it will not pay dividends for 2019 to its shareholders in order to ensure cash flow and financial balance this year and beyond.

The state owns 86% of Vietnam Airlines and in the context of the global aviation crisis, non-payment of dividends is a prerequisite for Vietnam Airlines to be considered by credit agencies and banks to reduce prices. or extend the payment schedule.

Aside from the gloomy 2020 figures, the firm has published positive news on its 2019 results.

Shareholders acknowledged many achievements of Vietnam Airlines over the past year, with record consolidated revenue of over 100,000 billion dong, up 1.4% year-on-year and more. large consolidated profit before taxes ever recorded at 3.39 trillion dong, up 2.3% from the same period.

Among the figures, the parent company contributed 74.7 trillion dong in revenue and 2.9 trillion dong in pre-tax profit, an increase of nearly 20% year-on-year and 8.3% more than the target set at the 2019 shareholders’ meeting.

The company sent nearly 793 trillion dong to the state budget, up 18% from the previous year.

The 2019 results significantly improved Vietnam Airlines’ financial ratios, enhancing capital autonomy and financial security. The debt to equity ratio fell to 2.7: 1, continuing the downward trend from previous years.

During the year, Vietnam Airlines operated 135,000 safe flights carrying 22.9 million passengers, with four-star international service quality. Flight punctuality (OTP) was around 90%.

Vietnam Airlines officially listed its HVN shares on the Ho Chi Minh City Stock Exchange (HoSE) on May 7, 2019.

Listing shares on HoSE has helped the company improve its reputation, the transparency of its information, increase the liquidity of its shares and access to new resources for raising capital from investors.

The company also set a record with a fleet of 100 planes and nearly 100 routes covering the world.

With the addition of 22 new modern generation aircraft, including the Boeing 787-10 Dreamliner, Airbus A350-900, A321neo and 10 routes, 2019 was the year Vietnam Airlines received the highest volume of aircraft. aircraft in history and has opened the largest volume of routes in the past five years.

Along with the expansion of aeronautical resources and the flight network, the airline has improved the quality of service by innovating in the integration of digital technology into flight experiences, such as the launch of mobile applications and services. automatic check-in, a wireless entertainment system in the Airbus A321neo fleet, an Internet connection service on Airbus. A350 aircraft and Vietnam Airlines-FPT Play app.

At the meeting, shareholders discussed and approved important contents, including a report on last year’s business results and major production targets and business plans for this year; last year’s audited financial statements and profit and dividend distribution plan; plan to consolidate the Board of Directors and the Supervisory Board, and sale of the A321CEO vessel manufactured in 2007.

On April 16, Cambodian State Secretariat for Civil Aviation (SSCA) spokesperson Sin Chansereyvutha told the Cabinet that Vietnam Airlines had sold its 49% stake in the national airline Cambodia Angkor Air. to undisclosed buyers, in a sale that included five A321 aircraft with a total liquidation value of $ 37 million.

VIET NAM / ASIA NEWS NETWORK

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