MIAMI – Vietnam Airlines (VN) is putting 11 of its Airbus A321ceo, averaging 12 years in age, on sale via an auction process. With the sale, VN is set to alienate the aircraft from its fleet within the current fiscal year.
The reason for the sale invoked by VN is a desire to modernize its fleet and adopt more modern and efficient aircraft. However, in view of the VN’s negative results posted for Q1 2021, the move could also be driven by a necessity to raise fresh cash and offset, at least in part, the revenue loss due to the COVID-19 pandemic and subsequent crisis.
Playing Nimble to Stay afloat
According to the Vietnamese TuoiTreNews.com, the carrier also plans to sell and lease back a spare PW1133G-JM engine. VN is not new to this type of operations, already carrying out a sale of five aircraft in 2019 and nine in 2020.
As per Q1 2021, VN posted a disastrous result with a loss of US$213m (VND4.9trillion) and an accumulated loss, slightly over its full capitalization, of US$619m (VND14.22trillion).
If not corrected, the situation could end in VN being delisted from the Vietnamese Ho Chi Minh-Ville stock exchange. To drive the point home, a warning was issued to VN last April.
According to Planespotters.net, VN has a fleet of 100 aircraft with two A320 and three Boeing 787 on order.
Vietnam Airline’s fleet is composed of two ATR42/72, 69 A321, 33 of which are stored, 14 A350, six of which are stored, and 15 Boeing 787, seven of which are stored.