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Tag: Vietnam Airlines

  • Vietnam Airlines reports $154 mln Q3 loss

    Vietnam Airlines reports $154 mln Q3 loss

    National flag carrier Vietnam Airlines recorded a net loss of over VND3.5 trillion ($154.3 million) in the third quarter, a sharp decrease compared to the first two quarters.

    According to a summary of consolidated financial statements for the third quarter, Vietnam Airlines earned net revenues of VND4.7 trillion, down 37.6 percent year-on-year.

    The sale of goods dropped 20 percent year on year to VND7.7 trillion.

    The airline reported a total gross loss in the sale of products and services of about VND3 trillion.

    While its financial revenue more than quadrupled over the same period to more than VND560 billion, administrative expenses and costs related to the cost of products increased to more than VND347.5 billion and VND282.2 billion, respectively, resulting in the reported net loss.

    The Q3 loss was less than the losses of VND4.9 trillion and VND4.4 trillion recorded in the first and second quarter, respectively.

    Its loss in the first 9 months of the year has crossed VND12.1 trillion.

    The carrier explained that the sharp drop in consolidated profits in the third quarter was not only due to the decrease in profits of the parent company, but also because the profits of subsidiaries providing aviation services, like Vietnam Airlines Engineering Company (VAECO) and Noi Bai Airport Services Company (NASCO), also decreased sharply.

    Vietnam Airlines said that it has proactively implemented drastic solutions in business operations to minimize the impacts of the Covid-19 pandemic, resulting in a significant drop in Q3 losses compared to the first two quarters.

    As of September 25, the carrier increased its charter capital to VND8 trillion.

    The carrier said business activities have gradually stabilized and it is preparing conditions for the recovery and development phase after domestic flights are allowed to operate normally.

    As of September, Vietnam Airlines’s total assets were valued at more than VND67 trillion, up more than VND4.5 trillion over the beginning of the year.

    The company has posted overdue debts of VND65.5 trillion compared to the beginning of the year, and more than VND1.4 trillion of equity, a decrease of nearly VND4.6 trillion over the same period. Of this, short-term debt is about VND42.2 trillion, up more than VND9.7 trillion.

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  • Vietnam Airlines launches e-commerce platform

    Vietnam Airlines launches e-commerce platform

    Vietnam Airlines has launched a new e-commerce platform VNAMALL, focused on selling imported products from countries to which it operates.

    As many as 300 products are available starting Monday on the platform, mainly pastries, fruit and wine.

    The airline also sells food typically available on its flights.

    It also introduced Vietnam Airlines Gift Card that comes with perks like more check-in baggage and priority check-in.

    VNAMALL is the latest initiative of the loss-making national flag carrier, which has been struggling to overcome Covid-19 impacts.

    The airline, in which the state holds a 86 percent stake, recorded an accumulated loss of VND17.77 trillion ($780.48 million) as of June 30.

  • US direct flight fare around $1,000

    US direct flight fare around $1,000

    A one-way ticket from Vietnam to the U.S. will cost around $1,000 and be available on the Vietnam Airlines website in a few days, the carrier has said.

    There would be a reduced number of passengers to lower the aircraft’s weight to ensure no fuel stops are needed, CEO Le Hong Ha told reporters Tuesday.

    On the Boeing 787 and Airbus 350 planes Vietnam Airlines uses, this means a maximum of 210-220 passengers instead of the full complement of 300, he said.

    The 2.2 million Vietnamese-Americans in the U.S. would be the main targets in the future, he said.

    The Vietnam-U.S. direct route would not be profitable for five to 10 years, but it is better to fly to sustain cash flows, he said.

    Passengers allowed to enter Vietnam from the U.S. now amid Covid-19 are experts, businesspeople and high-skilled workers.

    The first regular direct flight to the U.S. will leave HCMC in the evening of November 28, achieving a dream conceived nearly two decades ago.

    It will arrive in San Francisco 13 hours and 50 minutes later.

  • Vietnam Airlines direct flight to US takes off next week

    Vietnam Airlines direct flight to US takes off next week

    National flag carrier Vietnam Airlines will operate its first regular direct flight to the U.S. on November 28, achieving a dream conceived nearly two decades ago.

    The flight will depart from HCMC in the evening and arrive at San Francisco 13 hours and 50 minutes later, CEO Le Hong Ha said at a press briefing Tuesday.

    The return flight will leave San Francisco on the evening of November 29 (U.S. time) and arrive in HCMC on December 1, 16 hours and 40 minutes later.

    The wide-body aircraft Boeing 787-9 Dreamliner will be used for direct flights.

    Initially, there will be two flights a week and this can be increased to seven when the pandemic situation is under control, Ha said.

    Vietnam Airlines thus becomes the first Vietnamese carrier to operate a regular flight route to the U.S.

    In 2003, the airline had been directed by the Ministry of Transport to begin direct services to the U.S. by 2005. However, concerns over profitability had kept the carrier from implementing the plan until now.

    The national flag carrier is also studying the possibility of other direct routes to the U.S., including flights between Hanoi and HCMC to Los Angeles or Houston.

    The U.S. has one of the most stringent aviation standards in the world. There are around 20 airlines operating routes between Vietnam and the U.S.

    “We needed to prepare hundreds of kilograms worth of paperwork to meet the U.S. requirements,” Ha said.

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  • Vietnam Airlines stock trading restricted to afternoon session

    Vietnam Airlines stock trading restricted to afternoon session

    Trading in Vietnam Airlines’ stock will be restricted to the afternoon session from Nov. 3 aftermarket regulators deemed the carrier’s financial situation “risky”.

    The main bourse Ho Chi Minh Stock Exchange will consider lifting the restriction depending on its evolving financial situation.

    The airline reported a loss of VND8.46 trillion for the first half of this year.

    Its accumulated losses as of Jun. 30 were VND17.81 trillion, or more than its charter capital then.

    In reviewing the company’s half-yearly financial statement, auditors Deloitte Vietnam said it has doubts about the airline’s ability to “continue as a going concern.”

    The company’s recovery is dependent on financial support from the government, rolling over of loans by banks and the Covid-19 pandemic, it said.

    Last month Vietnam Airlines said it had issued nearly 800 million shares to increase its charter capital by VND8 trillion to VND22.14 trillion.

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  • Vietnam Airlines to resume all domestic flights

    Vietnam Airlines to resume all domestic flights

    Vietnam Airlines is set to gradually resume flying on 40 routes, or nearly its entire domestic network, by next month, prioritizing Hanoi, HCMC and Da Nang.

    Several flights are set to be resumed to the southern archipelago Con Dao Island, the central highlands province of Buon Ma Thuot and the northern province of Dien Bien from Thursday to Nov. 30.

    The group, which comprises low-cost carrier Pacific Airlines and Vietnam Air Services Company (VASCO), will start conducting 90 routes a day from Thursday and will increase the figure to 120 from the end of this month.

    There will be three flights a day between Hanoi, HCMC and Da Nang City. For the other locations the group will try to have at least one route a day, which could rise to two depending on demand.

    Passengers can fly if they have been fully vaccinated for at least 14 days, or to have recovered from Covid-19, or to test negative within 72 hours.

    Vietnam Airlines Group started resuming its domestic flights from Oct. 10. As of Tuesday it had conducted around 150 flights carrying nearly 12,000 passengers on 16 flight routes.

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  • Vietnam Airlines to resume all domestic flights

    Vietnam Airlines to resume all domestic flights

    Vietnam Airlines is set to gradually resume flying on 40 routes, or nearly its entire domestic network, by next month, prioritizing Hanoi, HCMC and Da Nang.

    Several flights are set to be resumed to the southern archipelago Con Dao Island, the central highlands province of Buon Ma Thuot and the northern province of Dien Bien from Thursday to Nov. 30.

    The group, which comprises low-cost carrier Pacific Airlines and Vietnam Air Services Company (VASCO), will start conducting 90 routes a day from Thursday and will increase the figure to 120 from the end of this month.

    There will be three flights a day between Hanoi, HCMC, and Da Nang City. For the other locations, the group will try to have at least one route a day, which could rise to two depending on demand.

    Passengers can fly if they have been fully vaccinated for at least 14 days, or to have recovered from Covid-19, or to test negative within 72 hours.

    Vietnam Airlines Group started resuming its domestic flights on Oct. 10. As of Tuesday, it had conducted around 150 flights carrying nearly 12,000 passengers on 16 flight routes.

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  • Air tickets sell fast after domestic routes reopen

    Air tickets sell fast after domestic routes reopen

    National flag carrier Vietnam Airlines has sold more than 80 percent of seats on domestic flights after ticket sales opened Oct. 10.

    Flights between Hanoi and HCMC, and HCMC and the central localities of Thanh Hoa and Hue, Hanoi and Da Nang, have been the most booked.

    Flights on these routes are almost full on Oct 10-12, according to a Vietnam Airlines representative. One-way tickets on the Hanoi – HCMC and HCMC – Thanh Hoa routes cost VND3.5 million ($154) each; HCMC- Hue and Hanoi – Da Nang, VND2.4 million each.

    “I have tried to book a flight back to Hanoi, but the Vietnam Airlines website informed me seats have already been fully booked till Oct. 13,” Bui Ngoc Quang, a quality assurance officer at the HCMC University of Social Sciences and Humanities said.

    Quang said he wants to fly back to his hometown, a village in Hanoi’s outskirts, as soon as possible, because his wife had recently given birth to a girl baby, their first child, but he has been unable to meet them for weeks. In late August, aviation authorities had instructed airlines to stop selling tickets until further notice as the Covid-19 outbreak raged.

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  • Vietnam private carriers seek zero interest loans

    Vietnam private carriers seek zero interest loans

    The Vietnam Aviation Business Association (VABA) has proposed an interest-free loan package for private airlines, similar to the one accorded national carrier Vietnam Airlines.

    The airlines are bearing high costs while revenue has declined drastically, but they have to maintain equipment and workforce so as to restart when the market recovers, VABA vice president and general secretary Bui Doan Ne, said at a recent meeting to discuss a bailout package for enterprises.

    Ne suggested stronger support from the government, including a preferential loan package with zero percent interest, similar to the one given to Vietnam Airlines.

    This year, the State Bank of Vietnam (SBV) has provided a refinancing loan of VND4 trillion ($173 million) at zero percent interest for one year to support Vietnam Airlines.

    The support for aviation businesses is necessary because this is an industry that has the ability to recover quickly when the economy opens and is also a major contributor to the state budget, Ne said.

    Vietnam Airlines, budget carrier Vietjet Air, the Airports Corporation of Vietnam (ACV), and the Vietnam Air Traffic Management Corporation (VATM) contributed over VND22 trillion in taxes and fees to the state budget in 2019.

    He said aviation development will spur tourism in particular and the economy as a whole. Some estimates say aviation growth of 2.5 percent will stimulate 1 percent of GDP growth.

    Nguyen Tuan Anh, head of the central bank’s Credit Department, said that it was planning a VND3 trillion aid package for enterprises.

    Nguyen Quoc Hung, general secretary of the Vietnam Banks Association, noted that not only airlines but a number of other businesses in the hospitality field were also severely affected by the pandemic and need support.

    “We should not support some industries while ignoring others as it would create inequality,” Hung said.

    The aviation industry has been among the hardest hit by the Covid-19 pandemic. In the first seven months of this year, Vietnamese carriers served 13.7 million passengers, down 32 percent year-on-year, according to the General Statistics Office.

  • Vietnam Airlines ready for US direct route

    Vietnam Airlines ready for US direct route

    Vietnam Airlines is set to receive its final permit from U.S. authorities to conduct regular direct flights to the U.S. after nearly two decades of preparation.

    The national flag carrier has completed all necessary documents to be approved by the U.S. Transportation Security Administration (TSA), it stated.

    It is set to receive the permit from Federal Aviation Administration (FAA) soon. The airline did not specify a date.

    Vietnam Airlines said the permit is different from that given earlier for international special charter flights between Vietnam and the U.S.

    The carrier had earlier received permits to conduct 12 charter flights last year and another 12 this year.

    Bamboo Airways had also received a permit to fly 12 charter flights to the U.S. from this month to November.

    Last month, Vietnam Airlines was planning to operate regular flights between Vietnam and the U.S. starting October.

    The airline in 2003 was ordered by the Ministry of Transport to begin direct services to the U.S. by 2005. However, concerns about profitability kept the carrier from realizing the goal until now.

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  • Government fund subscribes to Vietnam Airlines right issue

    Government fund subscribes to Vietnam Airlines right issue

    Vietnam’s sovereign fund has subscribed to Vietnam Airlines’s rights offering amid its accumulating losses due to Covid-19.

    The State Capital Investment Corporation (SCIC) paid VND6.89 trillion ($303.56 million) to acquire 689.5 million shares and kept its ownership rate in the state-owned carrier at 31.08 percent.

    The airline’s HVN ticker rose by the maximum allowed 7 percent Monday, its sixth consecutive day of gain.

    HVN’s issued VND8 trillion worth of stocks to existing shareholders to increase its capital.

    Japan’s ANA Holdings, the operator of All Nippon Airways which owns an 8.77 percent stake in Vietnam Airlines, sold its rights to buy 70 million shares to Vietnam Airlines employees since it is itself facing financial difficulties.

    The carrier estimates its losses for the first half of 2021 at around VND10.79 trillion.

  • Vietnam stops selling domestic flight tickets

    Vietnam stops selling domestic flight tickets

    The Civil Aviation Authority of Vietnam (CAAV) on Monday requested airlines to stop selling tickets for domestic flights until further notice.

    Airlines would need to refund tickets for customers who’ve already purchased theirs from July 21, the CAAV added.

    The number of flights from cities and localities under Covid-19 social distancing orders as dictated by Directive 16 would be limited as well, it said.

    Since July, the CAAV has requested airlines to limit the number of flights from socially distancing localities to Hanoi amid concerning coronavirus threats. The Hanoi-HCMC flight route, an important one, has been limited to two flights a day at maximum.

    Domestic flight passengers must present effective negative coronavirus test papers.

    Vietnam closed its borders and canceled all international flights in March last year, and has since allowed only certain categories of visitors with strict Covid-19 quarantine requirements.

    The country has recorded 445,292 local Covid-19 cases since the fourth coronavirus wave hit Vietnam in late April.

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  • Vietnam Airlines aims to start first US route in October

    Vietnam Airlines aims to start first US route in October

    Vietnam Airlines is planning to operate regular flights between Vietnam and the U.S. starting October, seeking to fulfill a dream of nearly two decades.

    The state-owned carrier will use either Boeing 787 or Airbus SE A350 aircraft for its inaugural U.S. route from Ho Chi Minh City to San Francisco with one refueling stop, CEO Le Hong Ha said.

    Since last year, the airline has been operating irregular charter flights to repatriate Vietnamese from the U.S. during the Covid-19 pandemic.

    The airline will rely on transporting cargo to offset initial low passenger demand, Ha said.

    Vietnam Airlines has been the worst-Covid-19-hit carrier in Vietnam. It has recorded a loss of about VND7 trillion ($306.65 million) in the first half this year, Ha commented.

    The airline in 2003 was ordered by the Ministry of Transport to begin direct services to the U.S. by 2005. However, concerns about profitability kept the airline from realizing the goal.

    Other Vietnamese airlines like budget carrier Vietjet and startup Bamboo Airways have all voiced interest in flying directly to the U.S.

    Bamboo Airways in May acquired slots to operate regular direct flights from HCMC to San Francisco and Los Angeles starting Sep. 1. But it is unclear whether flights would commence given the current severity of Covid-19 in Vietnam.

    In the first seven months of this year, Vietnamese carriers served 13.7 million passengers, down 32 percent year-on-year, according to General Statistics Office

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  • Carriers in dire straits and need support

    Carriers in dire straits and need support

    Vietnamese carriers are confronting major financial challenges as revenues plunge and debt soars. They need urgent government intervention to improve their cash flow, a report says.

    Since Covid-19 entered the country early last year, airlines revenues have plunged by 80-90 percent, according to a recent report by the Vietnam Aviation Business Association (VABA).

    National flag carrier Vietnam Airlines posted a loss of nearly VND5 trillion ($219 million) in the first quarter, the highest quarterly loss ever, and the Ministry of Planning and Investment has said that the company is on the verge of bankruptcy.

    Budget airline Vietjet is short of VND10 trillion to cover its expenses, and startup airline Bamboo Airways shares the predicament.

    The VABA report proposes that the government extends its support on airlines’ loans to include those registered since June 10 last year.

    The current support, including a delay in payment and a reduction in interest, only applies to loans recorded before that date.

    The report also proposes that the support lasts for three to six months after the government announces that the Covid-19 pandemic has ended or the country turns to “a new normal.” The carriers need time to recover after the pandemic has been contained, the report says.

    In the first seven months of this year, Vietnamese carriers served 13.7 million passengers, down 32 percent year-on-year, according to the General Statistics Office.

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  • Vietnam Airlines plans cargo carrier in Covid-19 response

    Vietnam Airlines plans cargo carrier in Covid-19 response

    National flag carrier Vietnam Airlines plans to form a cargo carrier as part of efforts to shore up its business that has been hard hit by Covid-19 outbreaks.

    The carrier has converted seven passenger planes into cargo carriers – five wide-bodied Airbus A350s and two narrow-bodied A321s, Vietnam Airlines chairman Dang Ngoc Hoa said at its annual shareholders’ meeting Wednesday.

    In June, its cargo transport revenue, which normally accounts for 10 percent of the total, surpassed that of passenger transport.

    According to Vietnam Airlines CEO Le Hong Ha, the airlines has considered establishing a cargo carrier for years, but the time was not considered opportune.

    Over the past two years, and especially in recent months, cargo transport has generated bigger revenues, so Vietnam Airlines is considering the plan more seriously, Ha said.

    Chairman of retail company Imex Pan Pacific Group, Johnathan Hanh Nguyen, has asked for permission to establish a cargo airline named IPP Air Cargo with an investment of $100 million, but the national aviation authority has informed the transport ministry that it will not recommend the establishment of any new carrier until 2022, given the pandemic situation.

    Budget airline Vietjet has re-configured 4 Airbus A321s to transport cargo.

    Meanwhile, foreign express delivery giants like DHL and UPS have increased flights and payloads to transport goods to Vietnam by air.

    According to a transport ministry report sent to the government, the proportion of cargo transport in local airlines’ total revenues in one year amid the Covid-19 outbreaks tripled against the pre-pandemic period.

    In the first half of this year, Vietnam Airlines racked up losses of some VND9.823 trillion (nearly $427.1 million). It has estimated consolidated losses of VND14.526 trillion this year, up nearly 30 percent against last year, and consolidated revenues of nearly VND37.4 trillion, down 11.6 percent.

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