Published on : Saturday, August 29, 2020
Vietnam Airlines is happy to announce the delivery of its first A320neo, an addition to the fleet that has finally arrived. One of the first, three planes has arrived, the plane, VN-A513, came via ICBC Aviation Leasing. It is the first A320neo in the wider Vietnam Airlines fleet.
A new wave of hopes for Vietnam Airlines
The A320neos deal was signed last year in June 2019. Vietnam Airlines was prominent during that period. The airline was also earning handsome profits and aviation industry of Vietnam was booming during that period. Vietnam Airlines was focussing on key expansion plans and further growth last year.
Unfortunately, with 2020, came uncertainties in business and most of the flights stopped since early March and April. The company is struggling to survive amidst new-normal with few domestic flights flying since May. But the numbers were remarkably low. For example, On the Hanoi – Ho Chi Minh route, one of the world’s busiest route, but at present Vietnam Airlines was operating just 23 flights per day.
However, international flights from Vietnam Airlines’ were suspended back in March. All these brought severe challenging time since the first quarter of 2020 and affected the airlines rapid growth momentum of the previous year. After earning US$4.3 billion in the 2019 financial year, Vietnam Airlines suffered a huge loss of around US$655 million this year.
Vietnam Airlines now in very bad condition shied chief accountant. Earlier this month, Vietnam Airlines’ chief accountant, Tran Thanh Hien also discussed that they are experiencing severe financial trouble and now the brand is struggling to even meet the daily expenditure, including staff salary and ground handling fees.
The airline is now requesting for a loan from the Vietnamese Government.