Representatives of the Finance Ministry and Vietnam Airlines at the opening ceremony of Vietnam Airlines share trading on Unlisted Public Company Market (File photo)

Hanoi (VNA) - Vietnam Airlines, the country’s largest aviation corporation, started trading more than 1.22 billion shares on the Unlisted Public Company Market (UPCoM) on January 3 at a starting price of 28,000 VND (1.24 USD) per share.

As expected, share prices, listed as HVN, hit the daily limit rise of 40 percent for the first trading day to 39,200 VND per share, putting the company’s market capitalisation at more than 48 trillion VND.

Before listing, it was traded at around 40,000 VND per share on the Over-The-Counter (OTC) market.

Vietnam Airlines has contributed the second largest volume of shares in scale and value on UpCom. The largest is the Airports Corporation of Vietnam (ACV), whose 2.18 billion shares were listed on November 21.

The corporation expects the listing to raise its brand profile and prestige on the market and mobilise capital for its investment needs. It also sees the listing providing the needed momentum to continue its restructuring itinerary, issue shares to increase capital and become a leading national and international firm.

Speaking at the opening ceremony of the UPCoM listing, Chairman Pham Ngoc Minh said Vietnam Airlines was the first and only airlines on the Vietnamese stock market.

He said it was one of the first three State-owned enterprises that have found a foreign strategic investor – Japan’s ANA Holdings Inc, which pledged to go along with Vietnam Airlines in its development process as well as co-operate in exploiting air route networks and improving corporate administration.

On January 2, Vietnam Airlines announced a syndicated profit of 2.5 trillion VND in 2016, a year-on-year increase of 140 percent, exceeding its annual target by 7 percent.

Its syndicated revenue was around 76 trillion VND, up 10 percent over the previous year. Of this, the parent company Vietnam Airlines, which has subsidiaries like Jetstar Pacific and Vietnam Air Services Company (VASCO), earned around 59.1 trillion VND in revenue and 1.6 trillion VND in pre-tax profit, which is 5.6 times higher than in 2015.

Vietnam Airlines said it had contributed around 4.9 trillion VND to the State budget, an 11 percent rise from the previous year.

It operated around 133,000 flights carrying 20.6 million passengers in 2016, up 18.7 percent over 2015. It also transported 264,000 tonnes of goods, exceeding its annual target by 10 percent.

The corporation has a number of subsidiaries that will enable it to develop and diversify service packages and maintain its lead in the market.

Vietnam Airlines is focused on offering four-star quality service on its domestic and international routes to southeast and northeast Asian countries, European Union and Australia. Jetstar Pacific operates mainly on domestic routes, so it offers highly competitive prices, as well as on short-distance international routes. VASCO offers aviation services and exploits small local airports incapable of receiving big aircraft.

As per the latest data from the Centre for Asia Pacific Aviation (CAPA), on the biggest domestic route between Hanoi and HCM City, Vietnam Airlines and its subsidiary Jetstar Pacific occupy 63 percent of the market share, 45 percent of it with parent firm. The corporation’s overall market share stands at 60 percent.

In 2017, Vietnam Airlines plans to continue focusing on safety and security for passengers and maintaining four-star quality service. It will work closely with its subsidiaries Jetstar Pacific, Cambodia Angkor Air and VASCO to offer quality services to meet increasing demand.-VNA