Vietnam Airlines JSC has just sent a document to the Ho Chi Minh Stock Exchange (HOSE) explaining measures and a roadmap to remove it from the list of stocks trading under supervision.
The airline said that its production and business activities were hit hard by the impact of the COVID-19 pandemic. Regular international air transport completely stopped after the outbreak since March 2020 and has only restarted since March 15.
Therefore in 2020, 2021 and the first quarter of 2022, Vietnam Airlines suffered losses in consolidated business results, while consolidated equity has been negative as of March 31, causing the company’s shares to be traded under control according to HoSE regulations.
Due to the serious effects of the pandemic, 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.
In 2022, the solutions aim to help the company avoid continued losses.
Between 2023 and 2025, Vietnam Airlines will continue to implement solutions to improve production and business results, and supplement equity to gradually overcome the crisis, recover and develop.
It has completed the restructuring project for the 2021-2025 period, including these solutions and sent a report to collect opinions from the State shareholders and competent authorities before finalising it in a report to the General Meeting of Shareholders.
The solutions are, firstly, to implement solutions to quickly recover and improve business operations, minimise losses in the transportation business when the market has not fully recovered (2022-2023) and aim to be profitable in the following 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 will be implemented mainly in 2022-2024.
Lastly is to issue shares to raise equity. This solution is expected to be implemented in 2023-2024. — VNS