Besides selling 11 aircraft, Vietnam Airlines also plans to sell and lease back a PW1133G-JM engine. This is a part of the airline’s long-term plan to restructure its fleet. The plans have been approved at the annual shareholders meeting in 2020.

Due to the unprecedented negative impacts of Covid-19, Vietnam Airlines had to call for financial support from its shareholders. Vietnam Airlines also plan to sell VND8trn (USD345m) worth of shares to existing shareholders to boost capital and pay off debts.

It is estimated that a total of 26 aircraft could be included in the sale and leaseback plan for the 2021-2025 period. The airline is considering divesting from several high-performing enterprises in the air transport service supply chain.

In the financial report for the first quarter, Vietnam Airlines earned VND7.4trn (USD319m), a drop of 60% compared to the same period in 2020. It incurred losses of VND4.9trn from various businesses activities.

Dtinews

Vietnam Airlines reports losses of nearly VND5 trillion in Q1

Vietnam Airlines incurred after-tax losses of nearly VND5 trillion in the first quarter of this year, surging over 90% year-on-year and the highest-ever losses recorded for a quarter, as the COVID-19 pandemic is emerging increasingly complicated.