Vietnam Airlines sells stake in Cambodian carrier

TD Editor

Vietnam Airlines will divest its stake in Cambodia Angkor Air and should conclude the sale of five aircraft the airline reported in financial audit notes for the year 2019.

However, the challenge will be to find a buyer when airlines are grounded, and the Covid-19 shows few signs of receding in the short-term. The company owns 49% of Cambodia Angkor Air, Cambodia’s flag carrier, and the remaining 51% belongs to the Cambodian government.

Like all airlines, the carrier is now operating just a few domestic flights and has suffered a significant setback with 100 aircraft grounded and half of its workforce on furlough. It will probably require VND 3.52 trillion (USD 150.94 million) in short-term loans as well as VND 12 trillion (USD 514.58 million) in state support.

Revenues of the national flag carrier in the first quarter fell 26% year-on-year to VND 19.2 trillion (USD 819 million). If the pandemic persists until the fourth quarter, losses could reach VND19.6 trillion (USD 836 million).
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