Vietnam Airlines JSC plans comprehensive restructuring to deal with COVID-19 crisis | Business

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the Vietnam Airlines JSC wrote a set of seven solutions for complete restructuring after another year grappling with the impacts of COVID-19, according to President Dang Ngoc Hoa. (Photo: VNA)

Hanoi (VNA) – According to Chairman Dang Ngoc Hoa, Vietnam Airlines JSC has drawn up a set of seven solutions for comprehensive restructuring, which are awaiting approval from authorities, after another year grappling with the impacts of COVID-19.

The state-owned company, which owns national flag carrier Vietnam Airlines, low-cost Pacific Airlines and Vietnam Air Services Company (VASCO), received refinancing loans worth VND 4 trillion (175. USD 63 million) at zero rate from the State Bank of Vietnam in the third quarter of 2021. The company then finalized the offer of 800 million shares to existing shareholders.

Despite these measures, much remains to be done to get it through the COVID-19[female[feminine crisis. In the first nine months of 2021, the company saw its revenue drop by 42% to over VND 18.73 trillion, according to Vietnam Airlines JSC. financial statement. The gross loss reached almost VND 11.83 trillion, compared to some VND 8.07 trillion during the same period last year.

At the end of the third quarter, its shareholders’ equity fell 75.5% year-to-date to just over VND 1.47 trillion. This year, the consolidated profit after tax amounted to minus 14.52 trillion VND.

Hoa said Vietnam Airlines JSC offered a set of seven solutions, including restructuring its fleet by deferring due payments; reduce aircraft leasing costs and postpone the delivery of new aircraft; restructuring of assets through the liquidation and sale-leaseback of aircraft; restructuring of the investment portfolio; accelerate the restructuring of the organization and corporate governance; issue additional shares; among others.

He also noted that the company has not yet decided whether to issue bonds in the country or abroad./.

ANV

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