Vietnam Airlines has confirmed issuing nearly $346 million in new shares to existing stakeholders to raise capital, in response to COVID-19 losses.
The airline aims to speed up its recovery from the negative impacts of the pandemic, expecting to return to profitability in 2023, where it experienced a loss of around $625 million. The issuance will be completed by June 2021 and the capital raised will be used to pay off all outstanding debt, according to chairman Dang Ngoc Hoa.
Considered as the World’s Leading Cultural Airline by voters at the World Travel Awards, Vietnam Airlines is the flag carrier of Vietnam. The airline was founded in 1956 and later established as a state-owned enterprise in April 1989. Vietnam Airlines is headquartered in Long Biên District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport. Vietnam Airlines has established itself as one of the region’s leading airlines thanks to its modern fleet and commitment to innovation and development, earning recognition from international and national communities through a series of prestigious awards. Skytrax – the world’s leading airline and airport rating organization – has ranked Vietnam Airlines as a 4-Star Airline for three consecutive years.
Vietnam Airlines was also named “Asia Pacific Airline of the Year” by CAPA in 2017 and several awards from World Travel Awards including “World’s Leading Airline – Premium Economy Class” and “World’s Leading Cultural Airline” (2017, 2018); Asia’s Leading Airline – Economy Class and Asia’s Leading Cultural Airline (2016). This achievement is the result of the carrier’s tireless dedication to providing the highest quality across a range of products and services. Vietnam Airlines has spearheaded Vietnam’s aviation market – one of the fastest-growing domestic markets in the world – throughout 20 years of development at a double-digit annual growth rate. Positioning itself as a modern carrier with an internationally recognizable brand characterized by Vietnamese traditional culture, Vietnam Airlines aims to achieve 5-star status and become a major airline in Asia.
Photo Credit: Vietnam Airlines