The Hanoitimes - National flag carrier Vietnam Airlines (HVN)`s shareholders have approved a plan to move its shares from UPCoM to Ho Chi Minh City Stock Exchange (HoSE), announced the airline in its annual shareholder meeting on May 10.
At the annual shareholders' meeting May 10, the airline announced that the plan to move from UPCoM to HoSE will be conducted after the completion of the sale of 191 million shares to current shareholders.
The state-owned airline earlier announced plan to issue more than 191 million shares at VND10,000 (US$0.4) apiece to current shareholders with the aim of increasing its charter capital.
"The State currently owns 86.2% stakes of Vietnam Airlines and we are carrying out procedures to offer for sale 57.9 million shares to existing shareholders. The national carrier will also list its shares on the benchmark stock exchange in Ho Chi Minh City (HoSE) in the second quarter of this year," CEO of Vietnam Airlines Duong Tri Thanh told local media.
Vietnam Airlines, said its pre-tax profit jumped 71% in the first quarter as growth on domestic and international routes exceeded its forecasts.
Pre-tax profit during the January-March quarter rose to VND1.46 trillion (US$64.13 million), the airline said in a statement released in April 26, up from VND854 billion (US$37.1 million) in the same period a year earlier.
Vietnam Airlines said it carried five million passengers in the quarter, up 5% from the same period last year.
"Demand remains high in Northeast Asian markets (Japan, South Korea), together with the implementation of market-driven solutions in the condition of high fuel prices," the airline said, adding it will take delivery of its 12th Airbus A350 in the second quarter.
Vietnam Airlines could launch non-stop flights to the United States in 2019, Chief Executive Officer Duong Tri Thanh said in February, but it would struggle to be profitable on U.S. routes due to the lack of business travelers.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.