Vietnam Airlines green-lighted to weather COVID-19 crisis
The National Assembly on November 17 endorsed a Government proposal to help national flag carrier Vietnam Airlines weather the COVID-19 crisis.
Many of Vietnam Airlines planes were grounded during the height of the first COVID-19 outbreak. (Illustrative image).
The National Assembly allowed the State Bank of Vietnam to re-finance credit institutions that lend additional loans to Vietnam Airlines for its operation. It also permitted the airline to offer additional shares to existing shareholders to increase charter capital.
The Government will assign the State Capital Investment Corporation (SCIC) to purchase Vietnam Airlines shares on behalf of the Government.
Vietnam Airlines was required to continue with solutions to reduce losses, and pay attention to employees’ interests as the COVID-19 pandemic is yet to show signs of abating.
The two COVID-19 outbreaks have dealt a heavy blow to Vietnam Airlines’ operation, causing it a huge loss of VND10.75 trillion from January till September. By September 2020, the firm had transported 10.2 million passengers and just earned nearly VND24 trillion, correspondingly equivalent to 58.8% and 41.7% of passenger numbers and revenue of the same period last year.
Vietnam Airlines has submitted proposals to relevant State agencies, appealing for a relief package worth VND12 trillion to survive the crisis.
Vietnam Airlines was said to get VND4 trillion worth of additional loans for its operation. However, the NA Standing Committee maintained that it is the government that has the authority to resolve the airline’s difficulty.
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