Vietnam’s National Assembly approved a plan this week that will inject new funds into state carrier, Vietnam Airlines, as it has suffered massive losses due to the global COVID-19 pandemic.
According to the governments plan, it will purchase new shares in the airline through the State Capital Investment Corp (SCIC). Although the amount of new funding that will be injected into the airline has not been disclosed yet, earlier this month the airline said it was in need of a minimum of $520 million USD in funds.
In October, Vietnam Airlines, which has 86% ownership by the government, reported a net loss of $453 million USD for the first nine months of this year as the coronavirus pandemic hammered air travel globally. Global airlines are expected to lose more than $10 billion USD this year, and many airlines are restructuring and selling assets to lower expenses with the hope that they can still be in business next year.