Vietravel Airlines wants to increase capital nearly sixfold

A Vietravel Airlines aircraft. (Photo courtesy of Vietravel Airlines)

Hanoi (VNA) - Vietravel Airlines has proposed the Government considering a roadmap to increase its investment capital from 1,300 billion VND (55 million USD) to 7,642 billion VND (roughly 323.67 million USD) by 2025, The Saigon Times reported on February 8.

After more than two years of operation, Vietravel Airlines has three Airbus A321 aircraft, with a total investment capital of 1,300 billion VND.

The carrier plans to add over 6,900 billion VND to its current investment capital, taking the total to 7,642 billion VND by 2025. The figure is expected to reach 8,252 billion VND in 2030.

Shareholders of Vietravel Airlines will contribute an additional 700 billion VND to raise the company’s contributed capital to 2,000 billion VND. The company will mobilize funds from stock investors and other sources for the balance.

According to Vietravel Airlines chairman Nguyen Quoc Ky, the capital increase aims to meet the development strategy of the airline, mainly expanding its fleet.

For a newly-established airline, aircraft fleet expansion is a prerequisite to survive and grow. He added that the firm could only earn profit when it possesses sufficient aircraft to meet travel demand.

The airline has made no profit over the past two years due to the impact of the Covid-19 pandemic and the small fleet size./.

VNA