Information on the operation of Pacific Airlines was reported by Vietnam Airlines at the upcoming general meeting of shareholders on June 28, 2022 on the restructuring of investments and subsidiaries.
According to a report of Vietnam Airlines, by June 2022, the financial situation of Pacific Airlines (formerly known as Jetstar) was very serious, cash flow shortages, large overdue debts threatened insolvency and forced termination of operations. motion.
Pacific Airlines was established in 1991 with state-owned shareholders. In 2007, Qantas Group bought a 30% stake in Pacific Airlines and the airline changed its name to Jetstar Pacific Airlines. By 2012, the State Capital Investment Corporation (SCIC) had transferred 68% of the capital at Jetstar Pacific to Vietnam Airlines.
By July 2020, Jetstar Pacific returned to the birth name Pacific Airlines.
In October 2020, Qantas Group carried out procedures to withdraw from the partnership at Pacific Airlines and transferred back 30% of Qantas’ shares in Pacific Airlines to Vietnam Airlines in the form of a gift.
At the time of the handover, Mr. Gareth Evans, Senior Leader of Qantas Group, General Director of Jetstar Group said: “In the face of a fiercely competitive market like Vietnam and the serious disruption of the aviation industry due to During the COVID-19 pandemic, we think it’s time to take advantage of Vietnam Airlines’ advantages and potential in the domestic market. Synchronizing the reservation system will help Pacific Airlines reduce costs and create a solid foundation for the airline. continued to rise strongly after restrictions on international movement were removed.”
In the first quarter of 2022, VNA received all shares owned by Quantas Asia Investment Company (Singapore) Pre Limited at PA and donated to the corporation to carry out the restructuring and divestment. Thus, Vietnam Airlines is holding about 98% of shares in Pacific Airlines.
According to our data in the period 2009-2021, Pacific Airlines only made a profit for 3 years while the remaining 10 years of loss, peaked in the period of Covid 2020 and 2021 Pacific Airlines lost VND 2,144 billion and VND 2,308 billion, respectively. The charter capital of the airline is only 3,522 billion VND. Currently, Pacific Airlines is deeply negative in charter capital.
Vietnam Airlines has widely announced the search for investors interested in the restructuring process of Pacific Airlines shareholders. However, the investor selection process encountered many difficulties in terms of mechanisms and policies according to current regulations for state-owned enterprises. VNA is continuing to report to the authorities for handling.
Notice of search for investors to restructure Vietnam Airlines’ Pacific Airlines
Source: CafeF
Source: Vietnam Insider