Vietnam Airlines presents recovery plan

HANOI, 16 June 2022: Vietnam Airlines forwarded a document to the Ho Chi Minh Stock Exchange earlier this week explaining measures and a roadmap to remove it from the list of stocks trading under HOSE supervision.

The airline said that its production and business activities were hit hard by the impact of the Covid-19 pandemic causing heavy losses during 2020, 2021 and the first quarter of 2022.

The airline was forced to hibernate its commercial passenger flight operations from March 2020 and only resumed service on 15 March this year.

In the statement to the stock exchange, the airline Vietnam Airlines said it suffered losses in consolidated business results, while consolidated equity has been negative as of 31 March.

The flag carrier has developed short-term and long-term solutions to minimise damage, improve production and business results, and supplement capital and cash flow for businesses.

Between 2023 and 2025, Vietnam Airlines will continue to implement solutions to improve production and business results and supplement equity to overcome the crisis, recover and develop gradually.

It proposes solutions to quickly recover and improve business operations and minimise losses in the transportation business as the market from 2022 to 2023 remains sluggish, creating a foundation to return to profit by 2025.

The airline is embarking on restructuring its assets and financial portfolios to increase income and cash flow. As part of the restructuring, Vietnam Airlines will sell or lease out older aircraft while applying divestment and capital transfer for some financial investment portfolios. According to the Vietnam News Agency report, the stated solutions will be implemented through to the end of 2024.

(Source: VNA)

LEAVE A REPLY

Please enter your comment!
Please enter your name here