Vietnam Airlines presents its recovery plan

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HANOI, June 16, 2022: Vietnam Airlines submitted a document to the Ho Chi Minh Stock Exchange earlier this week explaining the measures and a roadmap for removing it from the list of stocks traded under HOSE’s supervision.

The airline said its production and business operations were hit hard by the impact of the Covid-19 pandemic causing heavy losses in 2020, 2021 and the first quarter of 2022.

The airline was forced to hibernate its commercial passenger flight operations from March 2020 and only resumed service on March 15 this year.

In the stock exchange statement, Vietnam Airlines said it incurred losses in its consolidated business results, while consolidated equity was negative as of March 31.

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.

Between 2023 and 2025, Vietnam Airlines will continue to implement solutions to improve production and business results and supplement equity to overcome the crisis, recover and develop gradually.

It offers solutions to quickly recover and improve business operations and minimize losses in the transportation sector as the market from 2022 to 2023 remains sluggish, creating a basis to return to profit by 2025.

The airline is embarking on the restructuring of its assets and financial portfolios to increase revenue and cash flow. As part of the restructuring, Vietnam Airlines will sell or lease older aircraft while applying divestment and capital transfer for certain financial investment portfolios. According to the Vietnamese News Agency report, the announced solutions will be implemented until the end of 2024.

(Source: VNA)

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