What does Vietnam Airlines say about the risk of being delisted?

At the 2023 annual general meeting of shareholders of Vietnam Airlines on the morning of December 16, Mr. Tran Thanh Hien, Chief Accountant - Head of Finance Department of Vietnam Airlines, affirmed that the situation of negative equity, accumulated losses for 3 consecutive years and the risk of delisting of Vietnam Airlines shares is "very special".

Vietnam Airlines nói gì về nguy cơ bị hủy niêm yết? - Ảnh 1. — Vietnam Airlines at risk of delisting shares

Before the Covid-19 pandemic, Vietnam Airlines was one of the top enterprises with large capitalization, financial profitability and financial transparency on the stock exchange.

The situation of Vietnam Airlines with negative equity and accumulated losses has an objective impact factor, the Covid-19 pandemic, which has caused great consequences for the global economy, especially aviation and airlines are all in this situation.

"I believe that the state management agency and relevant agencies will objectively evaluate this factor and expect HVN shares to remain on the stock exchange," the Chief Accountant - Head of Finance Department of Vietnam Airlines emphasized.

Mr. Hien also affirmed that Vietnam Airlines is implementing a synchronous restructuring, in which the self-solution is the most important. The airline must move towards profitability, the ability to pay from business cash flow, and have a synchronous restructuring solution to overcome the consequences of Covid-19.

The balanced cash flow for 2023 - 2024 and the following years is the airline itself through cost-cutting solutions, internal to the business. With the solutions built, it is expected that in the near future, Vietnam Airlines will balance its finances and overcome the consequences of the Covid-19 pandemic, bringing its finances to a safe state, meeting the requirements of listed stocks on HOSE.

According to Mr. Hien, this year the aviation market recovered quickly, so Vietnam Airlines' cash flow improved significantly. In addition to ensuring production and business activities, the airline also arranged over 7,000 billion VND to pay off committed debts.

Vietnam Airlines determines overall restructuring

Answering the question of when accumulated losses will be erased, Vietnam Airlines' Chief Accountant said that if only normal business operations are carried out, it will take many years.

Vietnam Airlines has identified a comprehensive restructuring plan, including restructuring of assets, investment portfolio, capital sources, and proposing solutions to increase income and capital sources to improve cash flow to gradually eliminate accumulated losses.

Mr. Hien expressed his hope that the Government could approve the restructuring plan as soon as possible, such as divesting Skypec and issuing more shares to resolve difficulties for Vietnam Airlines.

For more information, Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, said that Vietnam Airlines has developed and is reporting to competent authorities for consideration of a comprehensive plan of solutions to remove difficulties for Vietnam Airlines due to the impact of the Covid-19 pandemic in the period of 2021 - 2025.

Although proactively implementing synchronous self-solutions to minimize damage caused by the pandemic, due to the huge impact of the pandemic and the long-lasting consequences, Vietnam Airlines has researched and proposed support solutions from the Government in its role as owner, focusing on a package of solutions to supplement cash flow and business capital.

Regarding the information that Prat Whitney - an American company specializing in manufacturing aircraft engines will recall about 3,000 A320Neo aircraft engines of airlines around the world in 2024 for technical inspection, ensuring the operational capacity of this model, Mr. Le Hong Ha, General Director of Vietnam Airlines, said that based on this parameter, Vietnam Airlines has about 12 aircraft that must have their engines removed for inspection, which will affect operations.

"Due to the disruption in the supply chain, the repair time has been extended, usually around 75 - 90 days but now it has been extended to more than 200 days. Vietnam Airlines conducts time management to ensure that the engine is maintained as quickly as possible to put into operation," said Mr. Ha.

To meet the peak transportation demand during the upcoming Tet holiday, Vietnam Airlines will choose to wet-lease up to 4 aircraft during this period, and will receive 2 more B787-10 aircraft and 3 A350 aircraft. Vietnam Airlines will wet-lease and dry-lease aircraft and monitor actual market developments to proactively operate this year.

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