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Wednesday, July 24, 2024

Vietravel to sell over 55% stake in Vietravel Airlines

The Saigon Times

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HCMC – Vietravel has announced that it will sell a 55.58% stake in Vietravel Airlines, while retaining over 44%.

After the deal, Vietravel Airlines will no longer be a subsidiary of Vietravel, the local media reported.

The local tour operator decided to transfer ownership of the new aviation market entrant after it reported its semi-annual business results with an accumulated loss of VND326 billion.

The Covid pandemic severely affected the company’s net revenue due to the suspension of local and international tourism operations, according to Vietravel.

Transferring the stake in Vietravel Airlines was in line with Vietravel’s restructuring plan, said the travel firm.

Established in 2019, Vietravel Airlines launched its maiden flight in late December 2020. The airline was approved for operation in 50 years with a total investment of VND700 billion. For the first year of its operation, the number of aircraft was three and will increase to eight until the fifth year.

During the pandemic, the air carrier reduced its flight frequency or refrained from launching new flights.

Vietravel Airlines will sell air tickets and restart flights from December 19.

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