A Vietnam Airlines aircraft prepares for take off from Tan Son Nhat Airport in Ho Chi Minh City. (Photo: VNA) Theairline said that its production and business activities were hit hard bythe impact of the COVID-19 pandemic. Regular international air transportcompletely stopped after the outbreak since March 2020 and has only restartedsince March 15.
Thereforein 2020, 2021 and the first quarter of 2022, Vietnam Airlines sufferedlosses in consolidated business results, while consolidated equity has beennegative as of March 31, causing the company’s shares to be traded undercontrol according to HoSE regulations.
Dueto the serious effects of the pandemic, the flag carrier has developedshort-term and long-term solutions to minimise damage, improve production andbusiness results, and supplement capital and cash flow for businesses.
In2022, the solutions aim to help the company avoid continued losses.
Between2023 and 2025, Vietnam Airlines will continue to implement solutions toimprove production and business results, and supplement equity to graduallyovercome the crisis, recover and develop.
Ithas completed the restructuring project for the 2021-2025 period,including these solutions and sent a report to collect opinions from the Stateshareholders and competent authorities before finalising it in a report to theGeneral Meeting of Shareholders.
Thesolutions are, firstly, to implement solutions to quickly recover and improvebusiness operations, minimise losses in the transportation business whenthe market has not fully recovered (2022-2023) and aim to be profitable in thefollowing years.
Second,restructuring assets and financial portfolios to increase income and cash flow.Accordingly, Vietnam Airlines will sell and lease old aircraft; divestment,capital transfer for some financial investment portfolios. This solution willbe implemented mainly in 2022-2024.
Lastlyis to issue shares to raise equity. This solution is expected to beimplemented in 2023-2024./.
VNA
