Vietnam Airlines Corporation (Vietnam Airlines) has just announced a cumulative loss of nearly VND22 trillion (nearly $1 billion) after three years of being impacted by the COVID-19 pandemic, calculated that this loss has accounted for most of the equity of Vietnam’s largest airline company. To save the situation, the company asked to be exempt from environmental tax on fuel, but the Ministry of Finance flatly refused.
Vietnam Airlines announced its financial report for the fourth quarter of 2021 with a loss of nearly VND1.12 trillion, bringing the total loss in 2021 to more than VND13.3 trillion. Cumulatively, Vietnam Airlines lost nearly VND22 trillion while its equity is about VND22.1 trillion, according to the financial report posted on the company’s website.
As of December 31, 2021, Vietnam Airlines recorded total liabilities of nearly VND62.6 trillion, nearly equal to its total assets of VND63 trillion, of which the liability to employees is more than VND1.07 trillion. Total short-term debt is over VND41.2 trillion and long-term debt is more than VND21.3 trillion, according to the company’s consolidated balance sheet.
Vietnam Airlines is still managed by the state, although it has changed to the form of shares since 2015, with the capital of 55.2% of the State Capital Management Committee (CMSC), 31.14% of the Investment Corporation Investment and State Capital Business (SCIC), and 5.62% of Japan’s ANA Holding Inc (ANA).
On February 15, Vietnam’s aviation industry began to reopen all regular international routes to countries and on March 15, Vietnam opened its doors to international guests after nearly two years of closure due to the pandemic.
In March, Vietnam Airlines operated 7,314 flights, according to Simply Flying. However, things have not been smooth sailing lately. The airline has just suspended flights to Moscow for “air insurance reasons” and is currently suffering from the war in Ukraine and Russia and rising fuel prices.
Faced with a prolonged loss, the Vietnam Airlines Corporation proposed to the Ministry of Finance to exempt 100% of an environmental tax on jet fuel in 2022 “because it is facing many difficulties in production and business activities when the price of gasoline continues to increase and the impact of the COVID-19 epidemic.”
However, the Ministry of Finance April 4 rejected this proposal, saying: “In the context of the State budget balance is still difficult, but many important and strategic spending tasks such as public spending must be ensured. When it comes to ensuring social security, hunger eradication and poverty reduction, and epidemic prevention and control, businesses also need to have a certain share with the state.”
Translated by Thoibao.de from VOA: https://www.voatiengviet.com/a/vietnam-airlines-lo-gan-1-ty-dola-sap-can-von/6514225.html
