Vietnam Airlines seeks government help to prevent share delisting

The state-owned carrier, which was warned by the country’s main bourse earlier this month about possible delisting due to mounting losses, has been trying to improve its financial situation, a spokesperson told the media.

“The risk of being delisted remains, and whether that happens depends on the airlines’ efforts and the government’s approval for its restructuring plans.”

The plan, which includes divesting from some subsidiaries and issuing more shares, will provide it with cash, the spokesperson said.

One of its subsidiaries is low-cost carrier Pacific Airlines which is recording a loss of over VND7 trillion ($296.76 million), and there are three investors who are interested in buying it, but there are conflicts in different laws concerning the sale of a state-owned company, the spokesperson said.

Vietnam Airlines’ HVN ticker has been restricted of trading after the carrier, in which the government holds an 86% stake, reported losses for the last two years.

As of June 30 its equity was a negative VND4.9 trillion ($209 million) and its overdue debts were more than VND14.85 trillion.

The losses came during the two years of Covid-19 when most flights were cancelled and travel activities came to a stop.

HVN has fallen by 36% this year to VND14,750.