Vietnam Airlines targets 20.1 million passengers in 2016

(VNF) - Since shifting to the model of a joint-stock company on April 1st last year, Vietnam Airlines operated 127,500 safe flights, transporting 17.4 million passengers and 221.6 thousand tonnes of cargo, consolidated revenue exceeding VND69 trillion, consolidated profit before tax reaching VND1,048.8 billion, and contributing VND 4.7 trillion to the state budget.

The information was presented to Vietnam Airlines shareholders at a meeting in Hanoi on May 23rd.

This year, Vietnam Airlines set the target to transport 20.1 million passengers, consolidate revenue exceeding VND 77.8 trillion, and profit before tax reaching VND2.3 trillion.

To implement the Prime Minister's instruction on the VNA Restructuring Scheme for 2012-2015, it has successfully pested all shares from 13 portfolios, three more than in the plan. The total capital from pestment was VND 819 billion, twice the invested value.

Speaking at the event, Mr Nguyen Nhat, Deputy Minister of Transport, highly valued the achievements of the company, saying that since July 2015, VNA has become the first airline in Asia to put into operation two modern, new-generation aircraft including Boeing 787-9 and Airbus A350-900. The company has extended both international and domestic air routes, improving the quality of both air and ground services to four-star international standard. VNA has also refreshed its brand image for more friendliness.

Shareholders also agreed to end the responsibility of Chairman of the Board of Directors of Vietnam Airlines Mr Pham Viet Thanh, a PCC member who was earlier appointed as Secretary of the Central Businesses Bloc’s Party Committee (tenure 2015-2020) by the Politburo; choosing Mr Pham Ngoc Minh, CEO Vietnam Airlines, to replace Mr Viet Thanh; and appointing Mr Duong Tri Thanh as a member of the Board of Directors of Vietnam Airlines cum CEO Vietnam Airlines. These decisions will be effective from June 1st, 2016.

Furthermore, it is finalizing a share sale agreement (SSA) to sell 8.77% of stake (around USD108 million) to All Nippon Airways - ANA, Japan’s biggest airline group by revenue. The final agreement is expected to be inked in late May. This trade deal should create impetus for the airline to improve its corporate governance capacity, finance ability, services quality, market development, and advanced technology, reaffirming its national flag carrier brand name - a main force of the nation’s aviation transport and one of the leading carriers in the region.

ANA is the biggest operator of the Boeing 787 Dreamliner, having taken possession of more than half of the 83 long-haul aircraft it has ordered./.

( VNF )