Vietnam Airlines launches restructuring plan; IPO in late 2013
Vietnam Airlines launched a restructuring plan designed to improve the airline’s competitiveness and efficiency through increasing sales while reducing expenses, reorganising the company’s structure and improving its fleet efficiency. As reported by local media sources including Asia News Network and Vietnam Business News, the airline intends to hold an IPO by the end of 2013, with at least USD200 million expected to be raised. 70% to 80% of the airline’s shares continue to be held by the Vietnamese Government. In 2015 and 2017, Vietnam Airlines expects to issue additional shares of a total value of USD450 million in order to raise capital to purchase nine A350 and four Boeing 787-9 aircraft. Once the restructuring is completed, the airline will reduce its subsidiaries from 18 to 15 while affiliate companies will reduce from 14 to 12.