Though Vietnam has largely been recovering quite rapidly from the COVID-19 pandemic, the country’s aviation industry remains significantly affected, with national flag carrier Vietnam Airlines suffering the most damage.
Assistance for its recovery was tabled at a conference on July 13 in Hanoi discussing the role of the State in helping it cope with the crisis.
Vietnam Airlines was the local airline hit hardest by the pandemic. According to a representative, its annual freight and passenger transport down 48% compared to 2019, with revenue falling 50 trillion VND and a loss of 15 trillion VND.
Around the world, governments have supported their national flag carriers in an attempt to restore their economy and tourism sector.
The financial support, according to economic analysts, would demonstrate the responsibility the Government holds for the airline, in which it owns an 86 percent stake.
A number of solutions have been proposed by analysts, such as facilitating the State Bank of Vietnam’s refinancing to Vietnam Airlines through credit institutions, or increasing its charter capital to raise equity and ensure restructuring.
Solutions are to be submitted to the Prime Minister for consideration./. VNA
Vietnam Airlines will continue expanding its domestic flight network with July 22 seeing the addition of four air routes connecting different regions nationwide in order to facilitate greater travel demand among local passengers.
The national flag air carrier is still moving ahead with its plan to buy 50 narrow-body aircraft, though it has reported a loss of VND2.6 trillion in Q1.