06:06 (GMT +7) - Monday 23/10/2017

Business

Vietnam Airlines wraps up AGM

Released at: 17:23, 21/06/2017

Vietnam Airlines wraps up AGM

Photo: Vietnam Airlines

Shareholders approve business targets and other matters at June 20 gathering.

by Ngoc Lan

At its annual general meeting (AGM) on June 20 in Hanoi, shareholders of Vietnam Airlines (VNA) approved a plan targeting consolidated revenue of VND87.9 trillion ($54.2 million) this year and to serve more than 22.5 million passengers.

The national flag carrier described business growth in 2016 as its best achievement. It conducted nearly 140,000 safe flights and carried more than 20.6 million passengers, increases of 13 per cent and 21 per cent, respectively.

It also posted pre-tax profit of VND2.6 trillion ($118.2 million), up 1.5-fold compared with 2015.

After-tax profit was nearly VND1.74 trillion ($76.56 million), VND736.52 billion ($33.4 million) of which will be given to shareholders as dividend payments.  

Labor productivity continued to grow in 2016, with the carrier’s employees benefitting from higher salaries, which increased 4.7 to 12.8 per cent, against 12 to 28 per cent in 2015.

Those at the meeting also approved a plan to offer an additional 191 million shares at VND10,000 ($0.45) each to existing shareholders. The offering will provide VNA with over VND1.91 trillion ($86.8 million) for the purchase of Boeing 787-9 and Airbus A350-900 XWB aircraft and allow it conduct other business activities.

VNA has two aircraft investments this year worth more than VND2.11 trillion ($95.9 million): ten Airbus A350-900XWB aircraft and eight Boeing B787-9 aircraft, accounting for 72 per cent of its total investment in 2017.

Vice Minister of Transport Le Dinh Tho told the AGM that the ministry appreciates the accomplishments of VNA, especially given that 2016 is the second year of its equitization and restructuring process. “The ministry also highly appreciates the leading role of the national flag carrier, which has always fulfilled its business and political tasks, preserved capital, and recorded stable and sustainable growth,” he added.

VNA has historically dominated both international and domestic markets but its hold on domestic flights has gradually loosened. Foreign ownership is limited to 30 per cent, meaning that it is difficult for overseas carriers to enter the market.

It has now begun to focus more attention on the low-cost market. Together with Australia’s Qantas it invested $139 million in Jetstar Pacific and has transferred some domestic routes to the carrier as part of the arrangement.

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