According to the annual report of Vietnam Airlines (stock code: HVN), Pacific Airlines – an airline in which Vietnam Airlines holds a 99% stake – recorded a 26% increase in revenue to VND 4,389 billion. However, the airline still reported a pre-tax loss of VND 1,499 billion.
According to Vietnam Airlines, Pacific Airlines’ business results were negatively impacted by the slow recovery of the international market, while the growth rate of domestic passengers also fell short of the plan. At the same time, the company also faced difficulties similar to other airlines such as high fuel prices and fluctuating exchange rates.
In this context, Vietnam Airlines said it will continue to implement solutions to coordinate resources, negotiate with suppliers to extend and defer payments, and support price reductions to help Pacific Airlines overcome the crisis.
In March, Pacific Airlines announced that it would temporarily suspend operations from March 18, after returning all leased aircraft to its partners. The main reason was that the airline was restructuring its routes.
Pacific Airlines will seek new partners to lease aircraft. Once leased, the airline will resume operations on the registered routes. Customers searching for flights can no longer find any Pacific Airlines schedules. Returning all aircraft to partners will clear some of the agreed debts, helping to reduce financial burdens for Pacific Airlines and Vietnam Airlines.
After the announcement of the flight suspension, on April 1, Pacific Airlines officially provided ground handling services to Bamboo Airways. All related tasks such as baggage handling, transporting passengers to and from the airport and the aircraft on each flight are handled by Pacific Airlines.
According to Mr. Nguyen Anh Dung, Acting General Director of Pacific Airlines, the time to service flights this morning has been completed earlier than the scheduled flight completion time by 3-5 minutes. The buses used to transport passengers have been refurbished (new paint, new leather upholstery for seats, etc.); the conveyor belt used to transport passengers’ luggage onto the aircraft has also been covered by Pacific Airlines to prevent rain and bad weather.
Pacific Airlines was established in 1991 and is the first low-cost airline in Vietnam. Vietnam Airlines currently holds more than 99% of the shares in this airline. However, unlike another low-cost airline, Vietjet, since the early 2000s, Pacific Airlines’ business results have been continuously loss-making.
In October 2020, Qantas Group – a foreign shareholder from Australia – completed the procedures to withdraw from Pacific Airlines and transferred 30% of its shares to Vietnam Airlines as a gift.
