Coronavirus-hit Vietnam Airlines to sell stakes in Cambodia Angkor Air

In its audited 2019 financial report, the air carrier said it holds a 49% stake in Cambodia's Angkor Air. The remaining stake belongs to the Cambodian government.

The air carrier that has also signed a contract to sell five A321 aircraft for over $37 million plans to hand over the jets before June 2020.

According to the report, Vietnam Airlines’ 2019 net revenue reached VND98,228 billion ($4.2 billion) and VND2,537 billion ($108 million) in after-tax profit, a slight increase. The company’s total assets as of December 31, 2019 reached VND76,455 billion ($3.25 billion).

However, the business situation has been worsening in the first months of 2020 when the airlines got a direct impact from governments’ travel bans to prevent the spread of coronavirus.

In the first quarter of the year, Vietnam Airlines’ revenue was seen at VND19,212 billion ($818 million), a decrease of VND6,712 billion ($285.6 million) compared to the same period last year, the Committee for State Capital Management at Enterprises said in a report.

Earlier, the air carrier sought government approval for financial assistance of $511 million since it had to halt all international routes whilst keeping domestic routes to a minimum. Since March the airline has been forced to unilaterally delay paying some debts due to the sudden loss of revenue.

Domestic flights resume

In a related development, Vietnam Airlines together with Bamboo Airways, and VietJet Air will resume domestic flights from Thursday (April 16) when the 15 days of the social distancing campaign completes.

Late March, the government suspended domestic flights and requested a social distancing campaign nationwide, in a bid to contain the spread of the coronavirus.

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