Vietnam Airline debuts 1.22 billion shares on UPCom
Vietnam Airlines, the country’s largest aviation corporation, on January 3 started trading its 1.22 billion shares on Unlisted Public Company Market (UPCoM) at a starting price of VND28,000 (US$1.24) per share.
Representatives of Finance Ministry and Vietnam Airlines at the opening ceremony of Vietnam Airlines share trading on Unlisted Public Company Market.
At this rate, the company occupied about 11 per cent of the market's capitalisation. Listed as HVN, it is +/-40 per cent fluctuation on its debut day. Before listing, it traded at around VND40,000 per share.
On January 1, Vietnam Airlines announced a syndicated profit of VND2.5 trillion in 2016, a year-on-year increase of 140 per cent and exceeding 7 per cent of its annual target.
Its syndicated revenue was around VND76 trillion, up 10 per cent over the previous year. Of this, the parent company Vietnam Airlines, which has subsidiaries such as Jetstar Pacific and Vietnam Air Services Company (VASCO), earned around VND59.1 trillion in revenue and VND1.6 trillion in pre-tax profit, which is 5.6 times higher than in 2015.
Vietnam Airlines said it had contributed around VND4.9 trillion to the State budget, a 11 per cent rise from the previous year.
Vietnam Airlines operated around 133,000 flights carrying 20.6 million passengers in 2016, up 18.7 per cent over 2015. It transported 264,000 tonnes of goods, exceeding 10 per cent of its annual target.
The corporation has a number of subsidiaries so it can develop and diversify service packages and maintain its lead in the market.
The carrier focuses on offering four-star quality service on its domestic and international routes to southeast and northeast Asian countries, European Union and Australia. Jetstar Pacific operates mainly on domestic routes, so it offers highly competitive prices, as well as on short-distance international routes. VASCO offers aviation services and exploits small local airports incapable of receiving big aircraft.
As per the latest data from the Centre for Asia Pacific Aviation (CAPA), on the biggest domestic route between Ha Noi and HCM City, Vietnam Airlines and its subsidiary Jetstar Pacific occupy 63 per cent of the market share. Of which, 45 per cent is with Vietnam Airlines. The corporation’s overall market share stands at 60 per cent.
In 2017, Vietnam Airlines said it would continue focusing on safety and security for passengers and maintaining four-star quality service. It will work closely with its subsidiaries Jetstar Pacific, Cambodia Angkor Air and VASCO to offer quality services to meet the increasing demands of fliers.