12.05.2021, 16:01

Vietravel rejects rumor of selling Vietravel Airlines

Vietravel rejects rumor of selling Vietravel Airlines

A flight attendant gives a wet wipe to a passenger on board a Vietravel Airlines flight. Vietravel has dismissed a rumor that it is selling Vietravel Airlines – PHOTO: VIETRAVEL

HCMC – Vietnam Travel and Marketing Transports JSC (Vietravel) has dismissed a rumor that it is selling Vietravel Airlines after many people said the firm would sell all its shares at the airline due to difficulties caused by the coronavirus pandemic.

Vietravel Chairman Nguyen Quoc Ky told the Saigon Times that the information about it selling the airline was incorrect.

Vietravel, which is the parent company owning 100% of Vietravel Airlines’ charter capital of VND700 billion, will not sell the entire stake at Vietravel Airlines and turn Vietnam Travel Airlines Co., Ltd, or Vietravel Airlines, into a joint stock company from a single-member limited liability company instead, Ky said.

After the shift, Vietravel will still play a role as the founder and manager of the airline. The shift is in line with Vietravel’s plan allowed by the competent agencies when Vietravel Airlines was established, meaning that the airline might be turned into a joint stock company from the second year of its operation.

The representative of Vietravel also said that the firm wanted to find a strategic partner to help it manage and exploit the airline with an aim to make Vietravel Airlines Vietnam’s first tourism airline.

Vietravel Airlines was licensed for air transport in late 2020 and began its maiden flight on December 26 last year.

According to a report by Vietravel’s board of directors, its travel business line has been severely affected by the Covid-19 pandemic. Since last year, it closed many branches in Bac Lieu, Soc Trang, Dong Thap, Vinh Long, Hai Duong and Long An to reduce costs.