Vietnam Airlines escapes from financial ruin

Created on 07.07.2021 09:24

Vietnam's national carrier Vietnam Airlines has received a VND 4 trillion ($ 174 million) loan from local banks that could save the carrier from financial insolvency.

According to local media, three banks (Vietnam Maritime Commercial Joint Stock Bank, Saigon-Hanoi Commercial Joint Stock Bank and SeABank) have agreed to provide the required amount in late June-July. Vietnam Airlines had suffered 5 trillion dong ($ 218 million) losses in the first quarter of 2021, and the cumulative damage from the COVID-19 crisis is estimated at 14 trillion dong ($ 609 million).

Due to the closure of the borders, the airline has lost the international segment that provided profit under normal conditions. Vietnam moved their available resources to the domestic market, but faced fierce competition from local low-cost carriers.

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