The Vietnam Airlines JSC has drafted a set of seven solutions for comprehensive restructuring after another year struggling with COVID-19 impacts, according to Chairman Dang Ngoc Hoa. (Photo: VNA)The State-owned corporation, which owns national flag carrier Vietnam Airlines, low-cost Pacific Airlines and the Vietnam Air Services Company (VASCO), received refinancing loans worth 4 trillion VND (175.63 million USD) at zero interest rate from the State Bank of Vietnam in the third quarter of 2021. The company later completed offering of 800 million shares to existing shareholders.
Despite these moves, more still needs to be done to get it through the COVID-19 crisis. In the first nine months of 2021, the company saw its revenue nosediving 42 percent to over 18.73 trillion VND, according to the Vietnam Airlines JSC’s financial statement. Gross loss reached nearly 11.83 trillion VND, compared to some 8.07 trillion VND during the same period last year.
Ending the third quarter, its equity plunged 75.5 percent from the beginning of the year to just over 1.47 trillion VND. This year, consolidated profit after tax amounted to minus 14.52 trillion VND.
Hoa said the Vietnam Airlines JSC has come up with a set of seven solutions, including restructuring its fleet by deferring due payments; reducing aircraft leasing costs and postponing delivery of new aircraft; restructuring assets through aircraft liquidation and leaseback; restructuring investment portfolio; accelerating organizational and corporate governance restructuring; issuing additional shares; among others.
He also noted that the corporation has yet to decide to issue bonds at home or overseas./.
VNA
