Vietjet Air performs ground services at Tan Son Nhat by itself, SAGS 'loses' hundreds of billions of dong in revenue?

Vietjet will provide ground services at Tan Son Nhat International Airport - Photo: VJC

Saigon Ground Services Joint Stock Company (SAGS) announced the termination of the contract to provide full ground services to Vietjet Aviation Joint Stock Company (Vietjet Air) at Tan Son Nhat International Airport.

The reason given by SGN is that Vietjet will perform ground services at Tan Son Nhat International Airport itself. Vietjet Air also said that SAGS handed over all ground services to Vietjet at 0:00 on April 20.

The termination of the contract with Vietjet Air could cause SAGS to lose a significant source of revenue. According to the 2024 financial report, SGN's net revenue last year increased by 4%, reaching VND1,518 billion. Meanwhile, after-tax profit reached VND295.9 billion, up nearly 23%.

Analyzing SAGS's revenue structure last year, Vietjet Air contributed nearly VND600 billion, while in 2023 it was also nearly VND540 billion. This level is equivalent to nearly 40% of SAGS's revenue last year.

SAGS's SGN stock reacted quite negatively after the above information was announced.

After two consecutive floor-price sessions, this morning (April 23), SGN shares fell another 1.2% to VND65,100/unit.

In a report sent to the Securities Commission, SAGS stated that the termination of the contract with Vietjet was an "event that had a major impact on production and business activities".

Notably, the 2024 financial report shows that Vietjet is the third largest shareholder of SAGS with a 9.11% ownership ratio (equivalent to more than 30 billion VND in contributed capital). The largest shareholder of SAGS is the Airports Corporation with 48% and America LLC holds nearly 25% of the capital.

Regarding operations, the annual report said the total number of flights SGN will serve in 2024 is 94,431.

When mentioning the challenges, SGN also said that airlines are facing many difficulties in cash flow, especially domestic airlines, leading to delayed debt payments, affecting the company's business operations.

On the positive side, the company said it signed several new international contracts last year.

The two sides transferred and handed over at the peak time, many flights were "delayed"

According to Vietjet, on April 20 and 21, some flights to and from Tan Son Nhat airport of Vietjet had to adjust flight schedules.

SAGS handed over all ground services to Vietjet at midnight on April 20, right at the peak time, when Terminal T3 was put into operation, causing congestion both inside and outside the terminal. During the holiday, the frequency of flights increased, and vehicles in the parking lot were also congested.

In addition, Tan Son Nhat Airport has started to put into service the new T3 terminal, the process of adjusting the operating plan before the peak period of April 30 and May 1, the high number of passengers, and the impact of the weather at Noi Bai airport have also caused many flights to have to adjust their plans.

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BINH KHANH

Source: https://tuoitre.vn/vietjet-air-tu-thuc-hien-dich-vu-mat-dat-o-tan-son-nhat-sags-hut-thu-hang-tram-ti-dong-20250423112532538.htm