Vietnam Airlines gets complete overhaul

Vietnam Airlines flight attendantsThe Vietnam government has announced that it will initiate what it calls a comprehensive restructuring of the national carrier, Vietnam Airlines, by 2015.

Under the plan, the government will reduce its stake in the airline from currently 80 per cent to 65 – 70 per cent after the company launches its IPO later in 2013 as expected.

Apart from the parent company, which includes 9 member companies, the restructured Vietnam Airlines will consist of 26 independently audited companies, the government said.

The parent corporation will hold a 100 per cent stake in Vietnam Airlines Engineering Company only, while owning half of the registered capital of 14 companies and less than 50 per cent of registered capital in the 11 remaining companies.

After finishing the restructuring plan, Vietnam Airlines will comprise four airlines: the national carrier, Vietnam Air Services Co, Jetstar Pacific and Cambodia Angkor Air.

The Vietnam government said it wants to see  the airline group ranked third in the region by 2013 by passenger numbers. Revenue from air transport in the country should reach $43.8 billion over the next 8 years with a pre-tax profit of more than $1 billion.

Vietnam Airlines’ total annual revenue reached $2.4 billion in 2012, surging 6.3 per cent. The airline also saw profits of $3.3 million, up 239 per cent year on year. At the end of 2012, the carrier controlled 69.7 percent of the domestic market, a decrease of 4.47 per cent year-on-year.