Vietnam Airlines' total consolidated revenue in 2015 reached 70,000 billion VND, up 129% compared to the plan.

At the Transportation Industry Review Conference on the afternoon of January 4, Mr. Pham Viet Thanh, Chairman of the Board of Directors of Vietnam Airlines Corporation (VNA) said that from 2012 to now, after 3 years, the average transport output of the Corporation has increased by 8-10%, revenue has increased by nearly 10%. However, the labor force has not increased, the Corporation mainly restructures the labor force to use labor most effectively.

In particular, in 2015, VNA's passenger transport output reached 17.4 million passengers, exceeding the 2015 plan by 4.8%. Total consolidated revenue was 70,000 billion VND, up 129% compared to the plan. Consolidated profit before tax reached over 1,400 billion VND, up 44% compared to the yearly plan, up 194% compared to 2014, contributing to the State budget over 4,400 billion VND. Average labor productivity increased, reaching 5.3 billion VND/worker, salary income increased by 28%.

Illustration photo.

Regarding equitization and divestment of non-core investments, Mr. Thanh said that this is an extremely difficult issue. Because it not only involves the internal initiative of the enterprise, but also has problems arising from the State's directives on divestment of non-core investments.

Accordingly, in the past 3 years, VNA has completed 10 divestment items according to the project approved by the Prime Minister. In addition, ineffective investment portfolios outside the core business were also included, bringing the total number of divestment portfolios of Vietnam Airlines to 13. In 2015, VNA completed divestment in 8 enterprises, bringing the total divestment value to 98% as planned, earning 819 billion VND, 2 times higher than the initial investment capital.

Mr. Thanh also said that VNA is currently in the final stages of selecting a strategic investor. It is expected that this January, VNA will report to the Ministry of Transport and the Government the results of the selection of a strategic investor.

Lessons learned from equitization and restructuring of non-core investments were shared by the Chairman of VNA: “The goal of equitization is to use resources effectively, reorganize enterprises with a streamlined, effective and efficient operating system. The most important thing is not to let workers lose their jobs, so it is necessary to retrain and expand the scale to increase labor productivity. To effectively implement equitization and restructuring of non-core investments, enterprises must be unified from awareness to action, and must have close direction and timely removal from the Government and the Ministry of Transport.”

Revenue target for 2016 is 77,800 billion VND

In 2016, in the context of Vietnam's deep integration through free trade agreements with many countries and regions, Vietnam's aviation industry also faces many major challenges when infrastructure capacity is gradually overloaded, exchange rate fluctuations... are direct impacts.

However, the Chairman of VNA stated that, with favorable domestic economic conditions, the GDP growth rate in 2016 of about 6.7% will be the basic foundation for the aviation industry to grow well this year. Therefore, VNA aims to achieve the transport output of 19.2 million passengers, an increase of 10.7% compared to the estimated performance in 2015.

With the open aviation market as well as increasing transport output in 2016, Mr. Thanh said that in 2016, VNA aims for consolidated revenue of VND77,800 billion, an increase of 12.2% compared to 2015. At the same time, VNA will also restructure the number of employees from 10,900 to 6,900 (a decrease of 35% compared to 2015), but labor productivity will increase, from VND5.3 billion/employee to VND8.8 billion/employee/year; the average salary of employees will increase by about 17% compared to 2015.

With the above estimated revenue, VNA is expected to achieve pre-tax profit of VND 1,568 billion, a 5-fold increase compared to 2015; consolidated pre-tax profit of the parent company - VNA is expected to reach about VND 2,321 billion, a 65% increase compared to 2015, on the basis of proactively setting the inflation index at 4%.

VNA representative also said that in 2016, along with continuing to modernize the fleet, VNA will also focus on restructuring the commercial system, ticketing system and flight network, promoting international cooperation and restructuring the fleet./.

According to VOV