Vietravel eyes stake sale in new airline
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Vietravel is seeking to sell an unspecified stake in its new airline which began flying earlier this year.
The travel giant will seek shareholders’ approval at the annual general meeting at the end of this month to sell the stake. Vietravel Airlines is wholly owned by Vietravel.
It began operating on several domestic routes amid the Covid-19 pandemic with three aircraft and is not expected to break even for at least a few years.
Last year Vietravel reported a loss of VND90 billion ($3.9 million), twice the profit it earned in 2019.
It made a loss of VND70 billion in the first quarter of this year.
But it targets a pre-tax profit of VND10 billion this year.
Questions & Answers
Q.Why is Vietravel seeking to sell a stake in its new airline?
Why is Vietravel seeking to sell a stake in its new airline?
The parent company, Vietravel, reported a loss of VND90 billion last year and a VND70 billion loss in the first quarter of this year. Selling a stake could be a strategy to address these financial challenges.
Q.When did Vietravel Airlines start operating and what is its current financial outlook?
When did Vietravel Airlines start operating and what is its current financial outlook?
Vietravel Airlines began flying earlier this year on domestic routes with three aircraft. It is not expected to break even for at least a few years, despite the parent company targeting a pre-tax profit this year.
Q.What was Vietravel's financial performance last year compared to the year before?
What was Vietravel's financial performance last year compared to the year before?
Last year, Vietravel reported a loss of VND90 billion ($3.9 million). This loss was twice the profit the company earned in 2019, indicating a significant downturn in performance.
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