Vietnam Airlines signs US$173.7-mln credit deal with three banks
National flag carrier Vietnam Airlines on July 7 signed a credit deal – worth total of VND4 trillion (US$173.7 million) – with three commercial banks, which are expected to weather the financial impact of the COVID-19 pandemic.
Under the agreement, the Southeast Asia Commercial Joint Stock Bank (SeABank), the Vietnam Maritime Commercial Joint Stock Bank (MSB) and the Saigon - Hanoi Commercial Joint Stock Bank (SHB) are committed to providing the carrier with zero-interest loans refinanced by the State Bank of Vietnam.
Despite the recovery of the domestic aviation market, Vietnam Airlines said, it has lost more than 60% of revenue due to travel restrictions and border closures induced by COVID-19.
Last year, the airline posted a revenue of over VND40.61 trillion, down 59% from 2019.
The carrier operated around 96,500 flights during the year, a drop of more than 48% as compared to the previous year. It served 14.23 million passengers and handled nearly 195,000 tonnes of cargo, decreases of 51% and 47%, respectively.
Vietnam Airlines, which is 86.19 owned by the government, is taking necessary steps to issue VND8 trillion worth of ordinary shares to existing shareholders by the end of third quarter of this year.
