05.01.2021 - 10:00 UTC
Vietnam Airlines (VN, Hanoi) will issue VND8 trillion dong (USD345 million) worth of common shares to existing shareholders “to supplement the capital” of the flag carrier in a plan to return it to profitability within two years.
The issuance will be completed by June 2021, as soon as approval is received from the State Securities Commission of Vietnam, the company announced in a disclosure following a meeting of shareholders on December 29. The proceeds will pay off outstanding debts and will be used for day-to-day operations.
“We have suffered the worst crisis in history because of the restrictions of governments around the world to curb the spread of the coronavirus,” chairman Đặng Ngọc Hòa said at the meeting.
The issuance of new shares is part of a VND12 trillion (USD518 million) rescue plan for cash-strapped Vietnam Airlines, a plan which the National Assembly of Vietnam unanimously approved in November. The package also involves VND4 trillion (USD173 million) in soft loans. With it, the carrier has set a target to start making a profit from...
04.12.2020 - 17:04 UTC
VietJetAir (VJ, Hanoi) has asked the government to encourage commercial banks to offer it soft loans of VND4 trillion dong (USD173 million), for which it would pay the principal and interest in 2023-2025, local media reported.
Speaking at a seminar titled “Overcoming crisis, developing Vietnam’s aviation sustainably”, the carrier’s chief financial officer, Ngọc Yến Phương Hồ, revealed that the company had incurred substantial losses over the last nine months, forcing it to sell assets, slash wages by 50% to 70%, and pay minimum salaries of VND8-10 million (USD350-430) to many staff.
Airlines in other countries, such as Thailand and China, have been offered financial support, she argued, and once Vietnam resumes international flights, they will be in a position to compete fiercely with local airlines. Vietnam’s carriers will continue to experience liquidity difficulties in the next two to three years, she added.
Last month, the National Assembly of Vietnam approved a VND12 trillion (USD520 million) bailout for majority state-owned Vietnam Airlines (VN, Hanoi), including low-interest loans worth VND4 trillion.
At the...
30.11.2020 - 03:48 UTC
The US Department of Transportation (DOT) has authorised Bamboo Airways (QH, Hanoi) to operate 12 charter flights to any point in the United States, making it the carrier's first foray into the coveted US market.
Deputy general manager Nguyen Ngoc Trong said that the first non-stop charter flights to the US could be operated by the end of 2020 or in early 2021, depending on further developments of the pandemic in the US.
The carrier has yet to apply for a Foreign Air Carrier Permit (FACP) or exemption authority, which would enable it to launch scheduled services to the US.
Bamboo Airways has long floated the idea of becoming the first carrier to launch direct services between Viet Nam and the US. It is targeting West Coast airports, most likely Los Angeles Int'l or San Francisco, CA. In 2019, the Federal Aviation Administration (FAA) updated Viet Nam's assessment to Category 1, thus enabling the launch of direct flights.
The Vietnamese carrier, owned by travel holding FLC Group, has yet to launch any...
18.11.2020 - 19:12 UTC
The National Assembly of Vietnam unanimously approved on the afternoon of the final day of its parliamentary session a VND12 trillion dong (USD518 million) rescue plan for flag carrier Vietnam Airlines (VN, Hanoi), local media and Nikkei Asia reported on November 17.
The cash-strapped carrier, in which the government owns an 86.19% stake, is “working on a restructuring plan” which it will submit to the government soon, assured Nguyễn Hạnh Phúc, chairman of the Office for the National Assembly.
As previously reported, outgoing chairman Phạm Ngọc Minh revealed at Vietnam Airlines’ annual general meeting on August 10 that the company was finalising procedures on a package involving VND4 trillion (USD173 million) in soft loans and a VND8 trillion (USD345 million) issuance of new shares to existing shareholders.
State Capital Investment Corporation, a state-owned holding company which is also considered a national wealth fund, will buy 85% of the new shares on behalf of the government, according to a parliamentary agenda issued last week.
“Vietnam Airlines continues to work on solutions to reduce losses, implement...
