Vietnam Airlines (VN, Hanoi Noi Bai International) is revisiting a plan to induct regional jets to fly to airports too small to handle the carrier's existing aircraft, according to the airline's general director, Le Hong Ha. Speaking at the annual general meeting of shareholders in Hanoi on June 21, 2024, Ha outlined several prospective fleet changes he said would accommodate growth.
He said between 2025 and 2030, Vietnam Airlines intends to buy or lease 50 narrowbody Airbus aircraft, or alternatively, lease E190s, which can fly into airports such as Con Dao, Rach Gia, and Ca Mau. Ha added that in light of worldwide aircraft shortages and the ongoing Pratt & Whitney engine issues, Vietnam Airlines is reconsidering a plan to sell three A321-200s. He also said the carrier is studying the C919 and could operate the type in the future.
Vietnam Airlines' current 97-strong fleet includes forty-two A321-200s, twenty A321-200Ns, fourteen A350-900s, six wet-leased ATR72-500s, four B787-10s, and eleven B787-9s. However, eleven of the A321-200Ns are out-of-service for mandated engine inspections. Ha said another six will go out of service by the end of the year, and he expects the engine inspections to take until the end of 2025 to complete. Consequently, in the short term, aircraft operating hours have been increased, and the network "rearranged."
In 2022, Ha canvassed the prospects of operating regional jets. At the time, he said the carrier was looking at the E190, E195, or A220 types and that he hoped to see the first flying by the end of 2023. Ha said they would replace the ATR72-500s, which subsidiary VASCO - Vietnam Air Services (0V, Ho Chi Minh City) operates on behalf of Vietnam Airlines.
Meanwhile, the state-owned carrier recorded consolidated calendar 2023 revenue of VND93.265 trillion dong (USD3.66 billion), nearly 30% higher than the previous year and approaching pre-pandemic peak levels. Pre-tax consolidated losses decreased by VND5.583 trillion (USD219 million), halving compared to 2022. Vietnam Airlines chairman Dang Ngoc Hoa told the meeting the board's primary goal in 2024 is to reduce losses and balance revenue and expenditure.
In the wake of the meeting, Bloomberg reported on a statement on Viet Nam's National Assembly's website that said the airline was facing a financial crisis because it had not completed refinancing tasks such as restructuring non-core investments and the sale of new shares. This was reportedly due to regulatory approval delays. However, the statement also warned that Vietnam Airlines faced insolvency as soon as next month if the repayment deadline for a government-backed loan is not extended.
Vietnam Airlines received VND4 trillion (USD157 million) in low-cost loans from commercial banks during Covid-19 that were refinanced at 0% interest in 2021 by the country's central bank. Repayments are now falling due. However, the government now wants parliament to approve a repayment extension through December 31, 2027, giving the airline time to complete its restructuring.
