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Vietnam Airlines to Spend $3.7bn on 50–75 New Airplanes

On Tuesday, May 7, the national flag carrier officially switched from the Unlisted Public Company Market (UpCOM) stock exchange to the Ho Chi Minh Stock Exchange (HoSE), with an aim to encourage governmental divestment and more investors.

The government currently holds 86.19% of Vietnam Airlines' stakes. According to the carrier's divestment roadmap 2019–2020, the state will be able to sell 35.19% of its stake in the company, which will result in the government holding only 51% of the airline, VnExpress reports. Vietnam Airlines chairman Pham Ngoc Minh said that this move will help encourage large investors to make private placements with the carrier.

The airline company also announced that it will spend US$3.7 billion to acquire 50 to 75 narrow-body planes during the 2021–2025 period to freshen its 12-year-old fleet. At the time of writing, Vietnam Airlines is holding its Annual Shareholders Meeting to present the details of the expansion along with other future financial plans.

During the shareholders meeting, the company said that by 2025, Vietnam Airlines — with Jetstar Pacific Airlines included — wants to increase its fleet size to 135–177 wide-body planes and 95–120 narrow-body ones. It's also waiting for approval to sell five A321 Ceos manufactured in 2004 and 2005.

[Photo via TripAdvisor]

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