Lawmakers approve Vietnam Airlines’ $870M share issuance plan

By Anh Tu December 1, 2024 | 01:21 am PT

A Vietnam Airlines aircraft seen at Dien Bien Airport in northern Vietnam in December 2023. Photo by VnExpress/Ngoc Thanh

Lawmakers have approved for state-owned carrier Vietnam Airlines to increase its charter capital by up to VND22 trillion (US$868 million) through selling new shares to existing shareholders.

In a session Saturday the National Assembly also granted Pacific Airlines, a subsidiary of the flag carrier, a waiver on penalties for late payments and tax arrears until the end of this year.

The decisions seek to help boost Vietnam Airlines’ post-Covid-19 recovery.

By the end of September the airline was posting an accumulated loss of VND35.2 trillion.

Its performance, however, has been improving in the last two years. The airline recorded VND860 billion in post-tax profit in the third quarter, its third consecutive quarterly profits.

Vietnam Airlines is more than 86% owned by the government and 5.62% by Japan's ANA Holdings, according to London Stock Exchange data.