Vietravel requests to raise capital

February 14, 2023 - 07:55
The purpose is to expand the number of aircraft in its fleet.
A Vietravel plane in Tân Sơn Nhất International Airport, HCM City. —VNA/VNS Photo 

HÀ NỘI — After two years of operating, Vietravel Airlines has requested further funding to expand the number of aircraft in its fleet, said the company’s leader.

Vietravel Airlines has submitted a proposal to the Government to raise the total investment capital for aviation projects from the current VNĐ1.3 trillion (US$55.1 million) to over VNĐ7.64 trillion in 2025, Nguyễn Quốc Kỳ, chairman of the Board of Directors of Vietravel Airlines, told

Currently, Vietravel Airlines owns a fleet of three Airbus A321 aircraft, with a capitalisation of VNĐ1.3 trillion.

For a new airline, investment in aircraft fleet development is an indispensable need for survival and development, Kỳ added. Because the company can only be profitable if it has a large enough fleet. 

According to the plan, the airline sets a target to increase the total investment capital for the project "Air transport and tourism in Việt Nam" to VNĐ7.64 trillion, equivalent to nearly 6 times the current amount. Its total investment capital is expected to reach more than VNĐ8.25 trillion by 2030.

By 2025, owners of Vietravel Airlines are expected to contribute an additional VNĐ700 billion, bringing the total capital from owners to VNĐ2 trillion. The remaining fund will be mobilised from investors in the market and other financial solutions.

Vietravel Group boosted its stake in Vietravel Airlines to 85.8 per cent of the company's shares, making it the airline's largest stakeholder.

Vietravel Airlines has been in business for than two years and operates 20 flights per day from five locations: Hà Nội, HCM City, Đà Nẵng, Quy Nhơn và Phú Quốc. — VNS