Vietnam Airlines' revenue could drop 16 percent, or 12.5 trillion VND (538 million USD), compared with its plan this year (Photo: VNA) Hanoi (VNS/VNA) - Theprofit of Vietnam Airlines Corporation will be strongly affected by the spreadof COVID-19 in countries around the world, according to the preliminary reportof the Committee for Management of State Capital at Enterprises (CMSC).
The report was released as the corporation has had to cancel many flights toits key markets in Asia and Europe and spend money sterilising itsservice system to ensure safety for passengers.
It is predicted that the corporation’s revenue could drop 16 percent, or 12.5trillion VND (538 million USD), compared with its plan this year, marking aloss of 4.3 trillion VND (while the profit plan is nearly 1.6 trillion VND).Therefore, it is difficult to complete the production and business planpreviously approved by the CMSC.
It said that 17 companies, which contribute to the corporation’s capital, willalso have a sharp decrease in revenue and corresponding profit. Thesecompanies’ pre-tax profit is estimated to fall by at least 320 billion VND,dividends profit sharing for the corporation will also drop by at least 250billion VND.
CEO of Vietnam Airlines Duong Tri Thanh said the corporation is being directlyaffected by the COVID-19 outbreak, which is “unprecedented in aviationhistory.”
“The key markets of Vietnam’s aviation are all affected by the coronavirus.China has now closed, while the Republic of Korea and Japan, where are the twomost important markets of Vietnam Airlines in Northeast Asia, are alsosuffering the spread of the COVID-19. The outbreak in Italy makes the Europeanroute very difficult,” Thanh said.
“Reduced ticket prices and increased operating costs due to sterilisation toensure safety for passengers will erode the profit of Vietnam Airlines in2020,” he added.
Thanh said the outbreak of COVID-19 has caused 40 percent of Vietnam Airlinesaircraft to be ‘exposed to the sun’. Its 20,000 domestic and foreign employeesare affected by the epidemic as the corporation applies unprecedented solutionsincluding senior leadership salaries reduced by 40 percent and subordinateofficials reduced by 30 percent, meanwhile employees rotate to be off work,foreign pilots take temporary leave and some representative offices are closed.
“The goal of Vietnam Airlines now is no longer about profits but cash flow andhow to survive in the current context,” Thanh said.
Coping with the on-going COVID-19 epidemic, Vietnam Airlines said it wouldconduct sterilisation of all international flights to Vietnam. Flights thatrecord passengers with abnormal health are also reported to the authorities anddisinfected immediately.
Disinfection is carried out after the aircraft arrives at the apron. The entirecabin area, cockpit and flight attendant preparation area are disinfected. Themost important areas for disinfection are places where there are many peoplecontacting by hand such as luggage compartment locks, armrests on the seats andtoilet door handles. Disinfection spray CH2200 is used according to thestandards of functional health units, approved by the aircraft manufacturersfor use on aircraft and does not affect passenger health.
To limit the spread of coronavirus, Vietnam Airlines takes body temperaturemeasurements of all passengers departing from Europe before boarding andprovides passengers with masks to use during the flight. Passengers areencouraged to stabilise their seats, limit movement and communication duringthe flight.
For domestic flights, Vietnam Airlines has conducted disinfection sprayimmediately after each flight at places where passengers are usually in manualcontact. Used headsets are disinfected with Chloramin B solution. The equipmentto serve passengers at Noi Bai and Tan Son Nhat international airports includeladders and passenger cars are also frequently cleaned with disinfectantsolutions./.
VNA
