Business
Vietnam Airlines expects VND50trn losses
  • | dtinews.vn | April 07, 2020 07:26 AM
Vietnam Airlines will lose some VND50trn (USD2.1bn) in revenues while 10,000 staff are without work due to the Covid-19 outbreak.


  

Vietnam Airlines expects VND50trn losses


Duong Tri Thanh, general director of Vietnam Airlines, said in a letter that had been sent to all employees. Thanh said they had never had to halt nearly all operations as 100 planes are grounded. Many other firms in the world are also struggling to survive.

"As the outbreak is still developing, in 2020, Vietnam Airlines will lose some VND50trn in revenue or 65% of its target," he said.

Vietnam Airlines will apply strong measures like cutting staff, cutting salaries and unnecessary expenses. Such decisions will affect all employees as over 50% of the current employees will be laid off and everyone will have their salary cut, Thanh said.

Vietnam Airlines Group has over 20,000 employees including 1,200 pilots, 2,500 engineers and 3,000 flight attendants. It is estimated that 90% of the pilots and flight attendants will be laid off. There are 15 Boeing 787 and 14 Airbus 350 planes. Each month, Vietnam Airlines has to pay USD30m a month for their fleet's rending and bank interests. The parking fee is VND6bn (USD253,000) a month.

Starting from April 1, Vietnam Airlines can only make six flights between Hanoi, HCM City and Danang.

Dinh Viet Thang, head of the Civil Aviation Administration of Vietnam, the aviation industry has never been in such difficulty. "Since the cash flow stopped, the airlines don't have anything to pay expenses," he said. "The cash flow is like the bloodstream in our bodies."

He went on to say that preventing and controlling the outbreak is the top priority.

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