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Monday, July 22, 2024

Vietravel Airlines wants to increase capital nearly sixfold

The Saigon Times

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HCMC – Vietravel Airlines has proposed the Government considering a roadmap to increase its investment capital from VND1,300 billion to VND7,642 billion by 2025.

After more than two years of operation, Vietravel Airlines has three Airbus A321 aircraft, with a total investment capital of VND1,300 billion.

The carrier plans to add over VND6,900 billion to its current investment capital, taking the total to VND7,642 billion by 2025. The figure is expected to reach VND8,252 billion in 2030.

Shareholders of Vietravel Airlines will contribute an additional VND700 billion to raise the company’s contributed capital to VND2,000 billion. The company will mobilize funds from stock investors and other sources for the balance.

According to Vietravel Airlines chairman Nguyen Quoc Ky, the capital increase aims to meet the development strategy of the airline, mainly expanding its fleet.

For a newly-established airline, aircraft fleet expansion is a prerequisite to survive and grow. He added that the firm could only earn profit when it possesses sufficient aircraft to meet travel demand.

The airline has made no profit over the past two years due to the impact of the Covid-19 pandemic and the small fleet size.

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