Vietnam Airlines plans to reduce state ownership to 65 percent: report

Thanh Nien News

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 A file photo of a Vietnam Airlines aircraft. Photo: T.N
National carrier Vietnam Airlines is expected to ink a deal to sell a stake of 8.77 percent for more than VND2.26 trillion (US$100.6 million) to Japan's ANA Holdings Inc at the end of this month, news website Dau Tu (Investment) reported Tuesday.
Following the deal, the government will own 87.73 percent of the airline that controls nearly half of the domestic passenger air market.
Vietnam Airlines will continue to sell more chunks of shares to reduce the state ownership to 75 percent, and then 65 percent, according to the website.
The carrier has too divested from 13 non-core businesses, including finance, insurance and real estate companies, in another restructuring effort, news website Saigon Times Online reported.
It now has stakes in 19 companies, including budget airline Jetstar Pacific and Cambodia-based airline Angkor Air.
Vietnam Airlines is expecting revenue to grow 12.7 percent to VND77.8 trillion ($3.45 billion) this year, and an increase of 15.5 percent in the number of passengers, to 20.1 million, according to the news website.

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