Vietnam Airlines is expected to invest 50 narrow ships, with a value of about VND 92,800 billion, which is 1.6 times the total value of its assets.
The above information is stated in the document of the Ministry of Finance to the Vietnam Airlines Corporation (Vietnam Airlines) to guide the order and authority to approve the investment policy of buying aircraft.
The investment project of 50 narrow -body aircraft of Vietnam Airlines has a total estimated value of about VND 92,800 billion. This amount is equivalent to 160% of the total assets of Gia Quoc airline, based on the financial newspaper until the end of 2024.
According to the current provisions of Law No. 69 on the management and use of state capital invested in production and business, with the project with an investment greater than 35% of the total value of assets, businesses need to consult the Ministry of Finance before the representative participated in voting at the General Meeting of Shareholders and the Board of Directors. However, the Ministry also noted that Vietnam Airlines needs to report to the Prime Minister in advance to review the comments.
If the Prime Minister agreed on the policy, the Ministry of Finance and related agencies, Vietnam Airlines will implement the project implementation procedure. At the same time, this enterprise needs to be comprehensive responsibility, ensuring the efficiency of investment and preservation of state capital.
A narrow aircraft of Vietnam Airlines at Da Nang airport. Image: Nguyen Dong
Previously, the Corporation’s leader once affirmed that confidently balanced a part of the capital for this project through the overall restructuring process. Along with that, Vietnam Airlines will work with domestic organizations to arrange capital with short and medium -term solutions for prepaid (PDP Financing), sale and lease of aircraft (Sales & Laseback).
This airline has plans to add a narrow fleet of aircraft from a few years ago to serve the needs of shipping in the future and replace the old A321 CEOs to improve operational efficiency. However, this process also encountered problems due to pandemic and some current regulations.
In 2030, the demand for Vietnam Airlines is 37 ships, narrow body 95 and 5 Atr. It is expected that by 2035, the company is expected to need 52 large ships and 112 narrow ships. Currently, the fleet of the national airline has about 100 aircraft, including more than 30 large body aircraft.
According to the consolidated auditing financial statements, Vietnam Airlines achieved a total revenue and income of 113,700 billion dong last year. Interest profits consolidated nearly 8,000 billion dong, of which the parent company profit is 2,775 billion. The company achieved this result thanks to the recovery business along with the subsidiary of Pacific Airlines by partners that were debt removed about 4,700 billion.
Last year, the company shipped 22.7 million passengers – an increase of 8.8% and 314,700 tons of goods – an increase of 40%. Each aircraft of Vietnam Airlines operates on average 11 hours a day – an increase of 25% compared to 2023.