HANOI, 13 April 2020: Vietnam Airlines will divest its stake in Cambodia Angkor Air and should conclude the sale of five aircraft the airline reported in financial audit notes for the year 2019.
Details of the financial statement were released at the weekend, and according to a report in VNExpress an online news channel, the report links the decision to divest to the impact of Covid-19 over the last three months.
But the challenge will be to find a buyer when airlines are grounded, and the Covid-19 shows few signs of receding in the short-term. Vietnam Airlines owns 49% of Cambodia Angkor Air, Cambodia’s flag carrier, and the remaining 51% belongs to the Cambodian government.
Vietnam Airlines will sell five A321 aircraft valued at USD37 million to what VNExpress called “undisclosed buyers” possibly by an optimistic deadline in July.
Like all airlines, Vietnam Airlines’ is now operating just a few domestic flights and has suffered a significant setback with 100 aircraft grounded and half of its workforce on furlough.
The airline will probably require VND3.52 trillion (USD150.94 million) in short-term loans as well as VND12 trillion (USD514.58 million) in state support.
Revenues of the national flag carrier in the first quarter fell 26% year-on-year to VND19.2 trillion (USD819 million). If the pandemic persists until the fourth quarter, losses could reach VND19.6 trillion (USD836 million),
Last year, Vietnam Airlines made VND99 trillion (USD4.25 billion) in revenue, up 1.4 % year-on-year, and VND2.53 trillion (USD109.05 million) in post-tax profits, down 2.3% year-on-year, according to its audited financial statement.
(Source: VNexpress)
