MIAMI – Vietnam Airlines (VN) has announced it is asking the Vietnamese government for anywhere between VND4-12tr (US$712-515m) before the airline’s coffers run out of cash.
Tran Thanh Hien, Chief Accountant for VN, says that by August 2020, the Vietnamese flag carrier could be in a “really bad” situation. The airline completely suspended flights from late March to late April and is struggling to continue to pay salaries and airport fees to keep its fleet grounded.
The airline has worked hard to cut costs, reducing salaries, and requesting staff to go on unpaid leave, saving VN an estimated US$193m.
On its part, the Vietnamese government has said it plans to reduce ownership in the airline from 81.6% to 51%. Hien is asking for a loan, not a bailout, and he promised “We are not looking for an investment, we will pay back this sum.”
Acquisition of Jetstar Pacific
Despite expecting to lose between US$644m and US$687m, VN has acquired full control of Jetstar Pacific (BL), planning on rebranding and restructuring the carrier as Pacific Airlines.