Vietnam Airlines (VN, Hanoi Noi Bai International) is planning to partially privatize VASCO - Vietnam Air Services (0V, Ho Chi Minh City) once its domestic subsidiary has been transformed into a joint-stock company.
Plans released by Vietnam's Ministry of Planning and Investment indicate VASCO will have a minimum chartered capital of VND300 billion (USD13.5 million) with Vietnam Airlines retaining a 51% controlling stake. The remaining 49% will be sold to Techcombank and its Techcomdeveloper unit which will hold 48% and 1% respectively.
Vietnam Airlines' capital contribution is covered by the five ATR72-500s and three spare engines VASCO will operate while Techcombank & Co. will inject a minimum of VND147 billion (USD6.61 million) in cash.
VASCO's new shareholding and corporate structure will allow it to raise capital through the issuance of shares while increasing its transparency, competitiveness and accountability. As it stands, Vietnam Airlines expects the new company to attain profitability from Year One onwards.
The transformation is expected to be completed during the second quarter of the year.
Founded in 1993, VASCO operates two ATR72-500s, leased from Vietnam Airlines, on flights to remote airstrips in Vietnam that are inaccessible to jet aircraft.
