Vietnam Airlines to sell 11 aircraft
In this article (5)
National flag carrier Vietnam Airlines has said it will auction 11 Airbus A321 CEO aircraft manufactured in 2004, 2007 and 2008.
The sale, which is set to take place this year, is part of its program to replace old-generation aircrafts that have been used for over 12 years. It also aims to increase its cash flow at a time of trouble for the pandemic-hit aviation sector.
The carrier had sold nine aircraft last year and five in 2019. It had a fleet of 107 aircraft at the end of last year, including 51 Airbus A321 CEO aircraft.
The carrier posted its largest quarterly loss ever in Q1 at VND4.97 trillion ($216 million), pushing its accumulated loss to VND14.22 trillion, marginally surpassing its charter capital.
If its performance continues in the same vein, the airline’s HVN ticker on the Ho Chi Minh Stock Exchange (HoSE) might be delisted. It has already received a warning from the bourse on April 15.
Questions & Answers
Q.Which specific aircraft models are Vietnam Airlines planning to sell?
Which specific aircraft models are Vietnam Airlines planning to sell?
Vietnam Airlines intends to auction 11 Airbus A321 CEO aircraft. These planes were manufactured in the years 2004, 2007, and 2008, indicating they are part of their older fleet.
Q.Why is Vietnam Airlines selling these aircraft?
Why is Vietnam Airlines selling these aircraft?
The airline is selling the aircraft as part of a programme to replace older-generation planes that have been in service for over 12 years. This move also aims to improve cash flow during a difficult period for the aviation sector.
Q.What are the financial implications for Vietnam Airlines if its performance does not improve?
What are the financial implications for Vietnam Airlines if its performance does not improve?
If its financial performance continues without improvement, Vietnam Airlines' HVN ticker on the Ho Chi Minh Stock Exchange (HoSE) faces the risk of being delisted. The bourse issued a warning on April 15.
Q.How many aircraft did Vietnam Airlines have in its fleet at the end of last year?
How many aircraft did Vietnam Airlines have in its fleet at the end of last year?
At the end of last year, Vietnam Airlines operated a fleet consisting of 107 aircraft in total. Of these, 51 were specifically Airbus A321 CEO models, the same type now being sold.
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