Hanoi: The CEO of Vietnam’s low-cost Viet Jet Aviation said it plans to expand its investment in new aircraft and technical facilities this year after it reported a small profit in 2020 despite the coronavirus pandemic.
VietJet Nguyen President and CEO Thi Phuong Thao said in a taped interview on January 9: “In 2021, we expect to continue receiving new modern plans and we will invest in maintenance and training facilities, and the investment will be higher than in 2020.” . Broadcast on Thursday at the next Reuters conference.
VietJet separately said on Wednesday that it raised $ 28 million through a bond issue last month to fund its development plans in 2021. It did not provide further details on the bond sale.
Vietnam has successfully contained the coronavirus with a series of quarantine and tracking measures. With just over 1,500 injuries and 35 deaths in total, it summed up economic activities earlier than most of Asia.
While all international commercial flights have been suspended since late March, domestic air travel has been subject to few restrictions.
She added that cargo transportation at FitGate in 2020 was 75% higher than in 2019, adding that its total domestic operations recorded positive growth in 2020, without giving comparative figures.
With the Covid-19 vaccine rolled out worldwide, Thao expects the global aviation industry to recover quickly.
It added that the Thai unit Vietjet increased its fleet of aircraft to 15 last year, while increasing its market share there as well.
“The demand for air travel is very high for business, investment, education and healthcare purposes, and we are actively conducting flights to repatriate Vietnamese from abroad,” Thao said.
She said the company was studying fund-raising options for its investment plans for this year, although she did not say how much.
“Our debt-to-equity ratio is 1.0, compared to more than 3.0 for the aviation industry, so we have scope to mobilize funds for our development,” Thao said.
It said the airline continued deliveries of Airbus SE narrowbody jets last year despite some disruptions in the manufacturer’s supply chain, but Boeing had not met the delivery schedule.
VietJet has 200 737 MAXs in order, according to Boeing, but the aircraft has yet to return to service in Asia after a global hiatus of nearly two years.