A Vietnam Airlines aircraft at Noi Bai International Airport in Hanoi. Photo by Shutterstock/Cesare Palma.
Vietnam Airlines is seeking an urgent VND12 trillion ($518 million) bailout from the government as the coronavirus continues to hit its revenues.
It is likely to report a loss of VND13 trillion ($561 million) this year, with revenues falling by half from last year to around VND50 trillion ($2.2 billion), CEO Duong Tri Thanh said at a meeting on Monday.
It has stopped all regular international flights since April when it operated only four domestic flights a day on average.
In June the number of passengers rose to 84 percent of the number a year earlier. “Since 1975 there has never been fewer flights in Vietnam’s skies,” he said, referring to the year the Vietnam War ended.
He expected the domestic market to recover to pre-pandemic levels only by the end of 2021, and the international market a year later.
Government advisors said at the meeting that other options to rescue the airline include issuing more shares to existing shareholders or allowing investment by sovereign fund State Capital Investment Corporation.
One of them, Nguyen Dinh Cung, said many other governments have bailed out airlines and Vietnam should do the same.
Thanh said Vietnam Airlines has taken up the issue of funding with All Nippon Airways, which owns a 8.6 percent stake in it, but since the Japanese carrier is also in trouble it cannot provide loans now.
In Vietnam, the aviation industry has been among the hardest hit by the coronavirus pandemic. Airlines served 14.6 million passengers in the first six months, down 46 percent year-on-year, according to the General Statistics Office.
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I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn.
I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law.
I have published many articles on national newspapers and radio stations in Việt Nam.
In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship.
Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam.
I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN.
I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net).
I study the art of leadership with many friends who are religious, business and government leaders from many countries.
In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống).
In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success".
I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.
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