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Pacific Airlines Announces Restructuring to Increase Efficiency

A representative from Pacific Airlines has announced that the company will be restructuring its fleet and flight routes as part of efforts to ensure and enhance operational effectiveness. During this period, some flight routes may change schedules or temporarily suspend operations. The airline's flight schedule will be restored and stabilized in the coming time. Pacific Airlines has developed and implemented a plan to best protect the interests of passengers. Those affected will be notified of new flight schedules or transferred to flights operated by Vietnam Airlines.

As part of its fleet restructuring roadmap, Pacific Airlines will lease aircraft from Vietnam Airlines to improve the operating efficiency of the company as well as optimize resource allocation within the VNA Group. Both parties have exchanged views and are finalizing the remaining procedures to complete the agreement and quickly deploy the aircraft for passenger service. At the same time, Pacific Airlines will also receive support and coordination from Vietnam Airlines in sharing some infrastructure and passenger service resources such as check-in counters and ground handling facilities. 

"Fleet and corporate restructuring is one of the most effective self-help solutions adopted by many airlines around the world and Vietnam in the context of the severe and prolonged impacts of the Covid-19 pandemic on the aviation industry," a representative from Pacific Airlines said. The restructuring is seen as necessary for Pacific Airlines to effectively recover and adapt quickly to the new environment while developing sustainably in the future.

Pacific Airlines was Vietnam's first low-cost carrier, with Vietnam Airlines now owning nearly 99% of its shares. Vietnam Airlines' annual report showed that in 2022, Pacific Airlines recorded total revenue of nearly 3,487 billion VND and pre-tax losses of 2,096 billion VND, a reduction of 212 billion VND compared to 2021. With continued losses exceeding 2,000 billion VND per year since the post-Covid period, Pacific Airlines' estimated accumulated losses by the end of 2022 have risen to over 10,700 billion VND and negative equity of 6,700 billion VND.

While the airline did not disclose details of lease negotiations, estimates indicate that returning all aircraft to leasing companies could help Pacific Airlines eliminate debt estimated at hundreds of millions of USD. The restructuring aims to optimize resources and stabilize operations as Pacific Airlines works to recover from pandemic impacts.

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