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Friday, July 1, 2022

Vietnam Airlines plans to sell aircraft due to losses

The Saigon Times

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HCMC – Vietnam Airlines, whose trading code is HVN, is seeking ways to restructure assets, sell aircraft and divest from certain businesses to cope with huge losses and improve business operations.

The carrier is proactively mapping out a 2021-2025 restructuring plan, with a focus on dealing with accumulated losses, the local media reported.

Under its plan, Vietnam Airlines will recover business post pandemic and restructure assets, including selling aircraft, leasing older planes and divestment.

Besides, the airline will issue shares to increase its capital in the 2023-2024 period.

In the first three months of 2022, the airline posted over VND11.6 trillion in revenue, up 55% year-on-year, and reported net losses of over VND2.6 trillion, sending the national flag carrier’s accumulated losses up to VND24.5 trillion, or over US$1 billion.

The airline’s operations have been severely affected by the Covid pandemic. Particularly, its international services were suspended from March 2020 to mid-March this year, the carrier said in its recent dispatch explaining why HVN shares were put on the watchlist.

The airline incurred losses in 2020, 2021 and the first quarter of 2022, while its equity was negative as of March 31, leading to the HVN stock being put on the watchlist in line with the Hochiminh Stock Exchange regulations.

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