Government discusses measures to support coronavirus-hit Vietnam Airlines

Tuesday, 2020-06-30 11:06:36
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Vietnam Airlines is in dire need of cash to keep its business running.
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NDO - Prime Minister Nguyen Xuan Phuc chaired a meeting on June 29 to discuss measures in addressing the difficulties facing national carrier Vietnam Airlines, which has been severely hit by the coronavirus pandemic.

Underlining the important role of Vietnam Airlines to the economy, the PM affirmed the government’s commitment to work with the carrier to overcome these troubled times.

He urged the ministries and agencies concerned to work out urgent measures to support the airliner in accordance with the law.

The government currently has an 86% holding in the carrier, which it has said is expected to run out of cash in the next 2-3 months as the coronavirus pandemic has grounded all its international services.

Earlier this month, a Vietnam Airlines official said that the company could incur losses of VND16 trillion (over US$680 million) in 2020 after taking various cost-cutting measures.

It is seeking to borrow VND12 trillion (over US$500 million) from the government.

According to a report by the International Air Transport Association, global airlines are expected to lose US$84.3 billion in 2020 due to the coronavirus pandemic, with revenues falling by half compared with last year to US$419 billion.