Vietnam Airlines Joint Stock Company, trading as Vietnam Airlines (VN, Hanoi Noi Bai International), has asked the Vietnamese parliament for permission to raise its charter capital by a maximum of VND22 trillion dong (USD866 million), the newspaper Bao Giao Thong reported.
The increase, to be conducted via a share issuance, is one of several restructuring proposals submitted by the airline that are now under consideration at Viet Nam's National Assembly.
Under the proposal, in the first stage of the charter capital increase, the State Capital Management Committee will purchase shares worth VND9 trillion (USD354 million) on behalf of the government. In the second stage, the government will allow private entities to buy up to VND13 trillion (USD512 million) worth of shares. The additional funds will be used to pay out pandemic-related debts and shore up Vietnam Airlines' financial capacity.
The Vietnamese government owns over 86% of Vietnam Airlines, and ANA - All Nippon Airways parent ANA Holdings holds a 5.62% stake, according to Reuters. The ch-aviation PRO airlines module shows that Vietnam Airlines flies to 60 airports in 20 countries with a fleet of one A320-200N, forty-one A321-200s, twenty A321-200Ns, fourteen A350-900s, eleven B787-9s, five B787-10s, and five ATR72-500s wet leased from subsidiary VASCO - Vietnam Air Services.
Vietnam Airlines reported a net loss of VND5.81 trillion (USD229 million) for calendar 2023, its fourth consecutive annual loss. However, the 2023 figure was a substantial reduction compared to its VND11.2 trillion (USD440 million) loss in calendar 2022.
