Efforts to handle more than 42,000 billion VND At the 2024 Annual General Meeting of Shareholders of Vietnam Airlines Corporation (VNA) on the morning of June 21, Mr. Dang Ngoc Hoa - Chairman of the Board of Directors of VNA revealed that over the past 4 years (2020-2023 period), VNA has made drastic efforts to implement comprehensive restructuring solutions for the enterprise. The total value of these solutions reached 42,400 billion VND. Of this, VNA saved and cut costs by 18,118 billion VND, negotiated a reduction in rental prices from 2021 to the end of the lease term of more than 16,000 billion VND and deferred rental payments of more than 8,300 billion VND. This is considered a remarkable effort by VNA in the post-pandemic context. At the beginning of 2024, the accumulated loss at the parent company VNA was VND 32,522 billion, the burden of paying overdue debts, restructuring, short-term loans and refinancing from the previous period was about VND 22,000 billion. In the past time, VNA has developed and reported to competent authorities a restructuring project including solutions to accelerate financial recovery and gradually eliminate accumulated losses. In addition, the airline also reviewed and cut down non-urgent investment projects; extended the progress of investment preparation to limit the arising of disbursement costs; extended the bidding progress, reduced the investment scale, proactively negotiated, requested support and sharing from partners to extend the payment progress while ensuring timely implementation of investment activities in equipment and essential infrastructure, without affecting or disrupting production and business activities. At the same time, VNA has strongly deployed IT solutions and digital transformation, applying AI technology in all areas of operation. In addition, the airline focuses on restructuring the organization to streamline the apparatus to help the business operate more effectively and productively. Emphasizing the State's support for VNA, Mr. Hoa said that in addition to the general support policy mechanisms for airlines such as tax reduction, environmental protection fees, and landing fees, VNA has received the mechanism of a 12,000 billion VND liquidity support package from the Government as the owner. Of which, 4,000 billion VND is refinancing loans and a plan to issue an increase in charter capital of 8,000 billion VND. "These supports have contributed to maintaining continuous operations for the airline during the severe consequences of the pandemic and ensuring cash flow for production and business plans, early recovery and gradually improving production and business efficiency for VNA," said the head of VNA. Target of reducing losses and balancing revenue and expenditure In 2024, the world's political and economic situation remains difficult with prolonged geopolitical conflicts and high fuel prices; USD interest rates remain high, affecting foreign exchange rates and input costs. In the context of many disadvantages in production and business activities, VNA has proactively implemented many synchronous solutions to ensure liquidity and continuous operation. In the first quarter of 2024, VNA's operations initially improved and air transport efficiency was achieved (consolidated profit of over VND 4,000 billion, of which the parent company alone was VND 1,492 billion). Pacific Airlines negotiated to reduce debt and write off nearly VND6,000 billion of debt with international creditors, making a major contribution to VNA Group's production and business results in 2024. According to Mr. Hoa, in 2024, the aviation business environment will still face many challenges from the world's geopolitical and economic situation, so VNA has built key goals, directions, and tasks. Accordingly, the airline focuses on implementing a restructuring project, with comprehensive solutions for restructuring assets, capital sources, investment portfolios, organizational structure, and corporate governance innovation. The main goal is to reduce losses and balance revenue and expenditure in 2024. VNA will expand its international flight network with new routes to Western Europe, maintain its main market share on key routes, and increase capacity on tourist routes. Restructuring solutions focus on completing divestment at a number of member companies and submitting to competent authorities a plan to extend the repayment of refinancing loans. At the same time, VNA will continue to report to competent authorities for approval and remove difficulties and obstacles so that in the 2024-2025 period, VNA will implement plans to issue additional shares to increase charter capital in the form of issuing additional shares to existing shareholders or issuing individual shares to new investors to supplement capital and cash flow for production and business activities in the coming time. Source: https://vietnamnet.vn/no-luc-tu-than-giup-vietnam-airlines-vuot-qua-kho-khan-2294721.html