Published On: Sun, Jan 17th, 2010

Vietnam Airlines to miss equitization deadline

State-owned Vietnam Airlines said it would not be able to finish its equitization process by July 1 as planned and would be a turned into to a one member limited firm.

Vietnam Airlines to miss equitization deadline

The national carrier would need more time to finish the process as many steps have to be considered carefully, VnExpress quoted Vietnam Airlines Chairman Nguyen Si Hung as saying Thursday.

For instance, it is not easy to appraise the corporate value of a large company like Vietnam Airlines, Hung said.

The government has said if Vietnam Airlines cannot finish equitization before the deadline, it will have to change to the model of a one member limited company

“Now that we know we will not be able to meet the deadline, we will have to accept the transformation,” Hung said.

Vietnam Airlines posted revenues of US$1.3 billion last year, against $1.56 billion in 2008. The annual figure was 4 percent higher than its target.

The airline is targeting 11 million passengers in 2010. It also plans to receive 16 new planes this year.

The government had said last December that it may revive long-stalled plans to sell shares in companies including Bank for Investment and Development of Vietnam, or BIDV, and Vietnam Airlines in 2010.

There are some state-owned banks and companies which planned to sell shares to foreign investors but due to the financial crisis, their plans have not been implemented yet, said Minister of Planning and Investment Vo Hong Phuc.

VietNamNet/TN

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