HANOI (Vietnam News/Asia News Network): Vietnam Airlines JSC has just sent a document to the Hồ Chí Minh Stock Exchange (HOSE) explaining the measures and a roadmap to remove it from the list of shares under surveillance.
The airline said its production and business operations have been hit hard by the impact of the Covid-19 pandemic. Scheduled international air transport has come to a complete halt after the outbreak since March 2020 and has only restarted since March 15.
Consequently, in 2020, 2021 and the first quarter of 2022, Vietnam Airlines suffered losses in consolidated business results, while consolidated shareholders’ equity was negative as of March 31, resulting in controlled trading of company shares in accordance HoSE regulations.
Due to the severe effects of the pandemic, the flag carrier has developed short- and long-term solutions to minimize damage, improve production and business results, and supplement business capital and cash flow.
In 2022, the solutions aim to help the business avoid continued losses.
Between 2023 and 2025, Vietnam Airlines will continue to implement solutions to improve production and business results, and supplement equity to gradually overcome the crisis, recover and grow.
It finalized the restructuring project for the period 2021-2025, including these solutions and submitted a report to gather the opinions of the State shareholder and the competent authorities before finalizing it in a report to the General Meeting of Shareholders.
The solutions are, first, to implement solutions to quickly recover and improve business operations, minimize losses in the transport sector when the market has not fully recovered (2022-2023) and aim to be profitable in the following years.
Second, restructure financial assets and portfolios to increase revenue and cash flow. As a result, Vietnam Airlines will sell and lease older aircraft; disinvestment, capital transfer for certain financial investment portfolios. This solution will be implemented mainly in 2022-2024.
Finally is to issue shares to raise equity. This solution should be implemented in 2023-2024.