This morning, August 10, Vietnam Airlines Corporation (Vietnam Airlines) held the 2020 Annual General Meeting of Shareholders. The 5th meeting since Vietnam Airlines officially operated in the form of a joint stock company The part of 2015 took place in the context of the complicated Covid-19 epidemic, posing many challenges for the aviation industry.
– Photo: Vu Tuan
Answering questions from shareholders, General Director of Vietnam Airlines Duong Tri Thanh said that from May to the end of July 28, Vietnam’s aviation market has recovered by 90%, following a very sharp V-shaped model. . Meanwhile, China recovered only 60%, Japan recovered about 70%. Vietnam is the market with the strongest recovery in the world. The international media also used the word shining – shine to talk about this recovery.
In a report in May, Vietnam Airlines determined the domestic market to recover in the fourth quarter of 2020. In fact, by July, the market had basically recovered. The second wave of Covid-19, however, broke this recovery, with flight numbers plummeting.
Last Saturday 8-8, Vietnam Airlines only flew 102 flights, 5 times lower than the recovery time (more than 500 flights per day), only 28% compared to the same period in 2019.
Sharing about the international market, Mr. Thanh said that the world airlines are expected to recover by 2024, but Vietnam’s international market is more favorable. Therefore, to the beginning of 2022, it was able to recover. Currently, the plan is still cautiously pushing back the time.
Mr. Thanh said that many scenarios have been given by the company, in which, the principle to move forward is to restructure the aircraft fleet. Because currently, Vietnam Airlines has a surplus of 72% of pilots, flight attendants and technicians involved in the aircraft and this will continue to last. The general director of Vietnam Airlines said that the aircraft that had a rental order will have to be postponed, pushed to the future, or if not necessary, it will be canceled. All other assets must also be restructured, whatever needs to be kept, or else will be sold. The specific plan will be in the big plan of the corporation.
Explaining the concern about the share price of Vietnam Airlines after a 30% drop while Vietjet still retains and announces the possibility that this year will still be profitable, CEO Vietnam Airlines said according to the International Air Transport Association. (IATA) sends to the Vietnamese Government forecasts that in 2020, Vietnamese airlines will lose over 4 billion USD, of which, Vietnam Airlines will lose half, the rest are other airlines. Mr. Duong Tri Thanh said: Covid-19 happened, the bigger the firm, the greater the fixed cost, the greater the damage.
Responding to shareholders’ concerns about the resilience of Vietnam Airlines, he affirmed that overcoming the crisis depends on the potential and capacity of the airline and the airline market.
Mr. Thanh emphasized that Vietnam Airlines has many strengths. Along with Vasco, Jetstar Pacific, the company has a diversified product chain and has niche markets. Vietnam Airlines also has a comprehensive line including aircraft repair, ground service, petroleum company, food service companies, 3 cargo handling companies, 3 airports based on a strong team, providing senior expert on pilots, engineering.
Vietnam Airlines has a State shareholder, accounting for 86% of the shares. In the past 5 years, Vietnam Airlines has paid the budget 26 trillion VND.
CEO Vietnam Airlines revealed that the capital increase for Vietnam Airlines is being implemented urgently and the final decision is about to be made. In the near future, the owners will take measures to increase loan capital for Vietnam Airlines to develop.
Chairman Pham Ngoc Minh stressed that governments of all countries have launched rescue plans for airlines. To date, all Vietnam Airlines reports have been received and responded positively. The Government is directing Vietnam Airlines and the State Capital Management Committee at enterprises to submit to higher levels of government support plans to the company: 4 trillion VND concessional interest loans, 8,000 billion VND increase in equity. “Currently completing the final procedures to submit to higher levels of the Government for approval” – Mr. Minh affirmed.
Chairman Pham Ngoc Minh also confided in the current global context, the future of the economy and the aviation industry is extremely uncertain. Leaders of Vietnam Airlines are always in a position of proactively updating the situation every moment, building the least worst plan to deal with, building solutions to recover each smallest market, expanding domestic flight network development. At one point, the domestic market share has reached over 55%, the goal to strive is very clear. The advantage of Vietnam Airlines is that the airline always develops synchronously from aircraft to pilots while ensuring quality safety and large targets for serving passengers.
Chief Accountant Tran Thanh Hien affirmed the advantage of Vietnam Airlines in the stock market is that the enterprise always ensures high transparency in accounting, financial reports and information provision. Shares of Vietnam Airlines are currently 23,700 / share, compared to 33,700 a year ago, with a decline of 30%. However, due to the Covid-19 influence, the share decline of airlines globally is as low as 30%, highest 100%, an average of 45%.
Mr. Dang Ngoc Hoa is the Chairman of the Board of Directors of Vietnam Airlines
The meeting voted to approve the content of dismissing the members of the Board of Directors due to their retirement age and working rotation, including: Mr. Pham Ngoc Minh, Mr. Koji Shibata and Mr. Nguyen Xuan Minh.
100% of the delegates voted to approve the list of nominated members of the Board of Directors, including: Mr. Dang Ngoc Hoa, Mr. Le Hong Ha and Mr. Tomoji Ishii. The delegates also approved the list to nominate Supervisors.
New Chairman of the Board of Directors of Vietnam Airlines Mr. Dang Ngoc Hoa
Results of election of additional members to the Board of Directors:
Member of the Board of Directors:
Mr. Dang Ngoc Hoa – Chairman of the Board of Directors from August 10, 2020
Mr. Le Hong Ha
Mr. Tomoji Ishii
Results of the Supervisory Board election:
Mr. Mai Huu Tho
Mr. Lai Huu Phuoc
General Director of Vietnam Airlines Duong Tri Thanh said that in the years from 2010 to 2019, Vietnam Airlines continued to grow. The business results of 2019 are even the best (parent company revenue Vietnam Airlines reaches more than 74.6 trillion dong, parent company’s profit reaches nearly 2,900 billion dong). By the end of January 2020, the company has never been so strong and large.
However, by 2020, Vietnam Airlines plans to submit a consolidated pre-tax loss plan of 15,177 billion dong and parent company’s net loss of 14,487 billion dong.
The airline temporarily stops operating flights to Europe and Australia until the end of 2020; Starting to operate routes in Northeast Asia and Southeast Asia again from the beginning of October with a limited frequency of 3-5 flights / week and gradually stabilizing operations from December.
In the last 7 months of 2020, the total domestic aviation market is expected to serve more than 18 million passengers, equivalent to 90% of the same period. For the whole year 2020, the total domestic market visitors will reach 34.95 million, 20% lower than the same period; Average price is likely to decrease by about 30%.
Financial difficulties due to the impact of the Covid-19 epidemic made Vietnam Airlines decide to cut the average income of the crew of pilots, flight attendants and ground staff, the annual income of the employee is only 40. -50% same period. In particular, the average income of pilots in 2020 will decrease to 77 million VND / month, a decrease of 48% compared to 2019. The income of flight attendants is 13.8 million VND / month, down 52%, the employees ground also has to decrease by 55%, only reaching 14 million / month.
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