As it scrambles to find ways to cut costs and secure new revenue streams, with renewed doubts about its ability to continue operating, Vietnam Airlines (VN, Hanoi) negotiates to cancel the delivery of four Boeing B787 and Airbus A320 and also postpone delivery. five other new aircraft until the end of 2022 and 2023 instead of 2020-21 as initially agreed.
The struggling national airline, which secured a 12 trillion dong ($513 million) bailout last year while struggling with around 20 trillion dong ($854 million) of debt, has also sold an aircraft, transferred purchase and lease rights recovered an engine and liquidated its investment in Cambodia Angkor Air (K6, Siem Reap), it summarized in its latest financial statements, covering the first half of the year. 2022. These moves earned him more than 860 billion VND ($36.8 million).
Vietnam Airlines said it continues to seek other sources of revenue, including further downsizing its fleet, selling more engines and offloading financial investments.
According to advanced ch-aviation fleets module, Vietnam Airlines has four aircraft to deliver, all B787-10s. It already operates four others of the type as well as eleven B787-9s. The carrier has no orders from Airbus, and the report did not say which specific deliveries it had tried to cancel, but it has in the past sought to renew its narrowbody fleet through small contracts. bareboat charter with lessors. However, just a month ago it issued a request for proposals for the bareboat lease of three new A320-200Ns with delivery dates expected in 2022 or 2023.
In the accounts, auditing firm Deloitte Vietnam expressed doubts about Vietnam Airlines’ ability to continue in business, as its short-term debt exceeded current assets (those held for a year or less) by more of 36.4 trillion VND. (1.55 billion USD) as of June 30. The auditor raised similar concerns in the first half 2020 and 2021 reports.
Its ability to continue operating will depend on the government’s commitment to continued financial support, loan extensions at commercial banks and financial institutions, and restructuring of payments to suppliers and lessors, Deloitte said.
Revenue was over VND30 trillion ($1.3 billion), double that of the same period last year, but due to high fuel prices and many international routes that have yet to taken over, the carrier suffered a loss of 5.1 trillion dong ($218 million). ), compared to around 2 trillion VND ($86 million) for the same period last year. As of June 30, its cumulative losses amounted to VND28.9 trillion ($1.24 billion).
The carrier did not respond to ch-aviation’s request for comment.