Vietnam Airlines Corporation anticipates a loss of 12 trillion VND in 2020. (Photo: VNA)Hanoi (VNA) – Vietnam Airlines Corporation anticipated a loss of12 trillion VND in 2020, or 2.42 trillion VND lower than previous prediction, it saidat the extraordinary shareholders’ meeting on December 29.
According to Vietnam Airlines Chairman Dang Ngoc Hoa, although the corporationhas been hard hit by the pandemic, its business achievement is better thanexpected.
As of the end of December, the corporation’s consolidated revenue is estimatedat 42.5 trillion VND, with parent company’s revenues topping 32.9 trillion VND,exceeding the targets set at the shareholders’ meeting on August 10 by 4.8percent and 1.4 percent respectively.
This year’s loss could be slashed further by 2.86 trillion VND when thecorporation completed adjustments for depreciation and distribution of repairand maintenance costs in line with the Government’s support policy.
The corporation, consisting of the national flag carrier Vietnam Airlines,Pacific Airlines and Vietnam Air Services Company (VASCO), operated 96,500flights, and transported some 14.23 million passengers and nearly 194,500tonnes of cargo in 2020. Besides, morethan 180 flights were arranged to bring home over 52,000 Vietnamese expats from30 countries and territories worldwide.
Hoa attributed the corporation’s better-than-expected performance to thenation’s good control of the COVID-19 pandemic, stable business environment,timely support from the Government, and its drastic measures to re-organiseoperation and cut expenditure.
During 2021-2025, Vietnam Airlines will sharpen focus on restoring businessactivities, undertaking comprehensive restructuring plan which includerestructuring of capital ownership and finance, assets and portfolios.
Hoa said, the corporation will work to improve business efficiency with thesell and leaseback (SLB) of aircraft, as well as wholly or partly divestcapital in enterprises with excellent performance with a view to better cashflow.
The government, through the State Capital Investment Corporation (SCIC), isholding over 86 percent of shares in the company, while Japanese aviationcompany ANA Holdings has an 8.7 percent stake, and other organizational andindividual investors own the remainder./.
VNA
