In order to remain solvent for the remainder of the year, Vietnam Airlines needs VND12 trillion from the State beginning from April, according to the Committee for State Capital Management at Enterprises (CMSC).
The CMSC has recently sent a document to the Prime Minister which outlines the impact of the novel coronavirus (COVID-19) epidemic on production and business activities of 19 groups and corporations which are under the management of the CMSC.
Vietnam Airlines has been the business most heavily affected by the COVID-19 epidemic, with its revenue falling by VND6,712 billion in comparison to the same period from last year, suffering a loss of VND2,383 billion in the process.
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If the epidemic lingers and only ends in the year’s fourth quarter, it is estimated that the national flag carrier’s total revenue will be VND38,140 billion, coming in VND72,411 billion under the set target and representing an estimated loss of VND19,651 billion.
At present, Vietnam Airlines has moved to halt all international routes whilst keeping domestic routes to a minimum. Since March the airline has been forced to unilaterally delay paying some debts due to the sudden loss of revenue.
During recent meetings held with the CMSC and the Ministry of Transport, Vietnam Airlines leaders expressed their concern regarding the length of time that the epidemic could last, whilst also stating that the airline is currently going through an unprecedented challenging period.
In addition, Vietnam Airlines has also announced plans to downsize personnel, including pilots, while reducing the salary of staff in the near future.