With 40% of the aircraft “covering up” and reducing salaries from leaders to employees, the Covid-19 epidemic had an impact that was “unprecedented in aviation history.”
According to Mr Duong Tri Thanh, General Director of Vietnam Airlines, in the domestic market, the new acute respiratory infection caused by the new strain of SARS-CoV-2 virus (Covid-19) dragged down the aviation industry 3-4 years and make the accumulation of 4-5 years ago regarded as returning to 0.
Emphasizing the serious impact of the SARS-CoV-2 (Covid-19) epidemic, “unprecedented in aviation history,” Thanh said that no passengers had to stop flying. Particularly, Vietnam Airlines has 100 aircraft and 40 aircraft are waiting. It is worth mentioning here, the aircraft had to stop operating but could not lease it because of the fast and strong outbreak.
For example, the case of regular Vietnam Airlines flights to Seoul and Busan (South Korea) with a frequency of 6 flights / day and operated by Boeing 787 and Airbus 350, now reduced to 4 flights / date and use of Airbus 321.
According to the General Director of Vietnam Airlines, in order to minimize damage due to the aircraft waiting, the airline has found a source of European partners to lease the aircraft from last January and the two sides have negotiated and finished. lease contract of 10 aircraft.
But in the past week, the partner canceled the plane rental on the grounds that Europe is also suffering from an epidemic, so passengers travel decreased.
The epidemic affecting aviation and tourism is first and foremost. Days before, the worst assessment of the Covid-19 epidemic lasted through May and into the summer was gradual recovery. But with the current situation when students and students leave school, the end of the school year is back, aviation is no longer peak in the summer in the domestic market, Thanh said.
Affirming the goal of Vietnam Airlines now is no longer talking about profits but cash flow to survive in the current context, Mr. Thanh said that at the Corporation, senior leaders in the Board of Directors, leaders of the Corporation will reduce salary by 40%, lower level by 30%, lower by 20%, employees have not applied salary reduction but will take a break to move to reduce salary.
According to the report of Vietnam Airlines, in addition to losing all Chinese passengers during the period of suspending operation of Vietnam-China routes, the airline will also reduce the number of passengers on other international routes to / from. Europe, Australia, Japan, South Korea, Southeast Asia … as well as on domestic flight network due to concerns about passengers’ disease (there are more and more delegations who have canceled flights).
As a result, Vietnam Airlines must proceed to adjust the operation plan, cancel all regular routes and hire trips to China, Macau, Hong Kong, reduce flight frequency, reduce supply on routes. fly to most other international routes.
The reduction of flight routes reduces revenue and profits for the transportation business of the airline and 17 member companies, and also causes other major fluctuations such as aircraft and pilot operation. , flight attendants, finance, cash flow and activities with suppliers, leaders of Vietnam Airlines said.
At a meeting of the Ministry of Transport’s Covid-19 epidemic damage assessment on the transport industry on February 27, instead of the expected loss of VND 10,000 billion as half a month ago, according to the estimate The latest calculation of the Vietnam Aviation Administration, the domestic airlines will suffer losses, reducing revenue by about VND 25,000 billion.
In the best case, the disease will be controlled before April 2020, Vietnam Aviation Administration proposed the total market scenario will reach 67 million passengers (down 15.4% compared to 2019). In which, Vietnamese firms carried 12.7 million international visitors (down 28.3%) and 35.3 million domestic tourists (down 5.5%), the total transport was only 48 million passengers (down 9 , 2% over the same period).
In the worse case, the disease was controlled before June 2020, taking into account the cancellation of all flights to South Korea, the total market was only 62.1 million passengers (down 22.6% compared to the previous year). 2019). In particular, Vietnamese carriers carried 10.4 million international visitors (down 41.2%) and 35.3 million domestic tourists (down 5.5%), the total transport only reached 45.7 million guests (down 17% over the same period).
From the calculated losses, the Ministry of Transport requests the Ministry of Planning and Investment to summarize and report to the Prime Minister to allow the Ministry of Transport to issue a policy to support aviation service prices for In particular, the policy of 50% discount for takeoff, landing aircraft and flight control service charges for domestic flights is expected from March 1. / 2020 to the end of 5/31/2020 and may adjust depending on the evolution of the disease.
-According to: Nextbrand collected and compiled-
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