(30 June 2021)
In light of the continued difficulties that the
ongoing global COVID19 pandemic is causing the airline industry, Vietjet Aviation
has revised its business plan for 2021.
The airline has set its 2021 targets
for air transport revenue at VND15,500 billion (approx. US$670
million) and consolidated revenue at VND21,900 billion
(approx. US$945 million), achieving year-on-year growth of 20%.
The results will mainly be driven by an increase in cargo
revenue, new services in air transport, personnel training, and
aircraft maintenance, and several investments in projects and
finance. Vietjet is ready for the upcoming recovery phase.
At the Annual Shareholder Meeting, Vietjet’s shareholders also
voted through the proposal for the appropriation of profit in
pursuant to Resolution 01-2020 of the General Shareholders Meeting
2020 and the appropriation of profit plan 2021.
Board of Directors (BOD) has declared a 25% stock dividend as
previously approved in Resolution 01-2020 to focus financial
resources on the air transport business. The BOD will also decide
on the plan for the appropriation of profit in 2021.
To guarantee sufficient resources for a safe and
efficient comeback of Vietjet, the shareholders agreed to let the
BOD decide on a plan to raise charter capital through private
placement of shares at a maximum of 15% of the charter capital.
The BOD will also consider a US$300 million international bond
offering in 2021-2022 to allow Vietjet to improve its financial
position and to stay on track of sustainable growth.
The shareholders have also passed an employee
stock ownership plan (ESOP) to issue up to 10 million shares. This
is expected to boost innovation, creativity,
and employee retention.
Regarding the audit report 2020, the revenue of
the parent company stood at VND15,203 billion (approx.
US$656million) while air transport made a loss of VND1,453 billion
(approx. US$62.7 million), relatively lower than expected.
Consolidated revenue was reported at VND18,220
billion (approx. US$787million) with consolidated profit reaching
VND68 billion (approx. US$2.9 million).
Vietjet’s total assets reached VND45,197 billion
(approx. US$ 1.95 billion) while its owner equity was VND17,325
billion (approx. US$751.3 million) including treasury shares. Debt-to-equity ratio stayed
as low as 0.66 while the liquidity ratio remained at 1.28.
The airline opened eight new domestic routes in
2020, flying more than 15 million passengers on nearly 79,000
flights with over 120,000 safe flight hours.
Vietjet has reported
passenger load factor at over 80% while the on-time performance rate
stayed at 90%.
Proactively implementing new approaches to develop
the cargo sector, Vietjet delivered more than 60,000 tons of cargo
on nearly 1,200 flights in 2020.
2020 also marked the first running year of the
Vietjet Ground Services Center (VJGS) at Noi Bai International
Airport in Hanoi. The center has helped the airline greatly
improve its service quality while cutting back on outsourcing
Extending training courses for employees, the
Vietjet Aviation Academy (VJAA) offered more than 47,300 hours of training throughout
2020, and partnered with aircraft manufacturer Airbus to
install the second flight simulator (SIM) to improve its pilot
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