VN to receive major business overhaul

Vietnam’s Ministry of Transport has suggested flag carrier, Vietnam Airlines (VN) could be facing restructuring, over the next eight years.

A proposal for the restructure has been submitted to the Vietnamese Prime Minister’s office in the hopes of developing the corporation into a large carrier group; encompassing key businesses within the aviation industry, according to the Vietnam News Agency.

The restructure will allow for four aviation service companies, 12 joint ventures, 15 subsidiaries and six new established companies.

The four aviation companies include Vietnam Airlines, the Vietnam Airlines Engineering Company (VAECO), low-cost carrier Jetstar Pacific Airlines and joint venture Cambodia Angko Air.

Business results are expected to improve when the restructure occurs, anticipating a turnover of US$43.5 billion and a profit of US$0.63 billion from 2012-2020.

The airline has plans to decrease its investment in inefficient non-core businesses, banking, real estate and loss-making enterprises by 2015.

The Transport Ministry has asked Vietnam Airlines to mobilise other capital sources for the restructure.

Sourced: etravelblackboardasia