VietNamNet Bridge – Vietnam Airlines, the nation’s flag carrier, has asked the Ministry of Transport for permission to increase its chartered capital to over VND14.2 trillion so that it could buy 18 more A350 and Boeing 787 aircraft.

An Airbus A350 jetliner of Vietnam Airlines prepares to land at Noi Bai International Airport in Hanoi. Vietnam Airlines has asked the Ministry of Transport for permission to increase its chartered capital so that it could buy 18 more A350 and Boeing 787 aircraft.

In a document sent to the ministry, Vietnam Airlines Corporation (VNA) said it wanted to proceed with its capital injection plan in January next year following the listing this month of its shares on the market for unlisted public companies (UPCoM). The company’s current chartered capital is VND12.22 trillion (US$539.4 million).

The capital increase was mentioned in VNA’s initial public offering (IPO) plan in November 2014.

If its chartered capital is revised up, its equity would rise from the current VND15 trillion to VND17 trillion, making it easier for the airline to ink deals to buy new aircraft, instead of seeking Government guarantees as before. As planned, VNA will sell 191.19 million shares worth VND10,000 each to its shareholders.

The State now owns 86.16% of VNA while the stake of Japanese airline ANA Holding is 8.77%, Technological and Commercial Joint Stock Bank (Techcombank) 2.1%, and the Bank for Foreign Trade of Vietnam (Vietcombank) 1.84%.

The proceeds from the proposed share sale would be used as reciprocal capital by VNA to buy 18 Airbus A350 and Boeing 787 jetliners between 2017 and 2019 at a total cost of VND41 trillion.

SGT