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A high salary bill and increased competition dragged on the carrier’s income last year. Vietnam’s national flag carrier Vietnam Airlines (VNA) has set a revenue target of VND87.9 trillion (nearly $4 billion) for 2017, up 22.7 percent from last year.
A report to be submitted at VNA’s annual shareholder meeting on June 20 shows that 2016 was a difficult year for the carrier due to increased competition from budget airlines on international and domestic routes.
In 2016, VNA’s revenue hit VND71.6 trillion, eight percent below its target. That was partly due to a salary bill for 6,199 workers that cost VND2.7 trillion.
Pilots’ salaries rose 4.7 percent on average to VND115.3 million per month, while flight attendants enjoyed a rise of 10.9 percent from last year to VND25.5 million.
According to the airline, the Vietnamese economy remains unpredictable due to foreign currency and fuel price fluctuations, as well as fiercer competition.
At the upcoming meeting, VNA will ask shareholders to for approval to issue 191 million new shares to existing stakeholders at a starting price of VND10,000 in order to increase its charter capital.
If the proposal is adopted, the shares will be issued in the fourth quarter of this year, bringing the airline’s charter capital to VND14.2 trillion.
The money will be used to buy more Boeing Dreamliners and Airbus A350s.
