State to retain majority stake at national airline

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SaigonTimes English - 37 month(s) ago 3 readings

HCMC - Prime Minister Nguyen Tan Dung has made clear that the State will keep its majority stakes at Vietnam Airlines Corporation and its affiliates when they undergo equitization and restructuring from now to 2015.

State to retain majority stake at national airline

By Binh Nguyen - The Saigon Times Daily

HCMC - Prime Minister Nguyen Tan Dung has made clear that the State will keep its majority stakes at Vietnam Airlines Corporation and its affiliates when they undergo equitization and restructuring from now to 2015.

Document 2129/TTg-DMDN signed on Tuesday by Deputy Prime Minister Vu Van Ninh clarifies the State will retain more than 50% of chartered capital of Vietnam Airlines Corp. when it goes public as planned in the period.

The Ministry of Transport and relevant agencies will have to urge this corporation to map out an equitization plan for submission to the Prime Minister for consideration and approval.

The Prime Minister allows Vietnam Airlines Corp. to maintain all equity of Vietnam Airlines Engineering Co. (VAECO), which maintains and repairs aircraft as well as their parts and accessories. Earlier this year, this company got an FAR-145 certificate from the U.S. Federal Aviation Administration for meeting strict criteria for aircraft maintenance hangars, human resources, training, operations, safety and quality systems among others.

The corporation is permitted to hold a majority stake of more than 50% at Vietnam Air Petrol Co. (Vinapco) and decide its stakes at ground services enterprises at the country’s major airports Noi Bai, Tan Son Nhat and Danang when they are equitized.

In the document, the Prime Minister ordered Vietnam Airlines Corp. to report its restructuring plan for Vietnam Air Services Co. (Vasco) and its plan to purchase new aircraft in the coming years in the fourth quarter of this year.

Vietnam Airlines Corp. now uses a young fleet of 72 aircraft including Boeing 777s, Airbus A330s, A321s and A320s for more than 300 daily flights on routes to 20 domestic and 26 international destinations. It plans to operate 115 airplanes by 2015 and 170 by 2020, with such modern aircraft as Airbus A350 XWBs and Boeing 787-9s.

In mid-July this year, the Ministry of Transport supported Vietnam Airlines’ fleet expansion plan that also envisages the world’s first twin-deck, twin-aisle super jumbo jet Airbus A380. The ministry passed to the Prime Minister the plan until 2020 but told the corporation to weigh the nearly US$8.4 billion spending on this aircraft fleet expansion and the possibility for a return on investment.

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