Vietjet raises $43.6 mln from bonds
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Budget airline Vietjet has raised VND1 trillion ($43.61 million) from a domestic company to expand operations amid the Covid-19 pandemic.
The bonds are without collateral with a maturity of five years starting from May 24.
Revenues in the first quarter fell 56 percent year-on-year to VND4.05 trillion. In the same period, the company reaped post-tax profit of VND123.32 billion.
The profit came from its other investment to make up for the loss in its main business that is taking hits from social distancing.
It managed to lower operating costs by half and sales and administration costs by 39 percent.
Questions & Answers
Q.Who provided the funding to Vietjet?
Who provided the funding to Vietjet?
The budget airline Vietjet secured VND1 trillion, equivalent to $43.61 million, from a domestic company. This funding is intended to support the airline's expansion of operations despite the challenges presented by the Covid-19 pandemic.
Q.How did Vietjet manage to report a profit in the first quarter despite falling revenues?
How did Vietjet manage to report a profit in the first quarter despite falling revenues?
Vietjet achieved a post-tax profit of VND123.32 billion in the first quarter, even with revenues falling by 56 percent year-on-year. This profit was generated from other investments, offsetting losses incurred in its primary aviation business due to social distancing measures.
Q.What measures did Vietjet take to reduce its expenditures?
What measures did Vietjet take to reduce its expenditures?
Vietjet implemented significant cost-cutting measures during the first quarter. The company successfully reduced its operating costs by half, while also cutting sales and administration costs by 39 percent. These actions helped mitigate financial impacts.
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