1. Plan to acquire 50 narrow-body aircraft in 2030–2032

• Total investment of VND92.4tn (USD3.6bn), with equity/debt structure at 54%/46%, respectively. HVN estimates the project’s NPV of VND5.3tn (USD207mn), IRR 9.11%, and a discounted payback period of 12.8 years.
• The company plans to purchase 100% brand-new aircraft directly from manufacturers and is considering the A320Neo and B737Max8 models. The expected delivery schedule is 14/18/18 aircraft and 2/4/4 spare engines in 2030/2031/2032, respectively. 
• However, HVN is working with manufacturers such as Airbus and Boeing to accelerate aircraft deliveries, potentially taking over early delivery slots if other airlines revise their fleet plans. If new aircraft are not delivered before 2030, VNA has prepared contingency plans to lease aircraft from lessors or other airlines during the 2027–2029 period to ensure sufficient fleet capacity for domestic demand and international network expansion.

2. Other comments from management

• In Q1 2025, HVN revenue was VND30.6tn (USD1.2bn; 8% YoY; 24% of our full-year forecast) and NPAT-MI was VND3.4tn (USD132mn, -22% YoY; 917% of our full-year forecast). Per management, the strong performance was driven by (1) a robust recovery in international routes, (2) favorable jet fuel prices, (3) optimized aircraft utilization despite engine-related groundings, and (4) effective commercial partnerships, brand promotion, and thorough preparation for the peak season.
• Vietnam Airlines acknowledges that engine issues and supply chain disruptions are industry-wide challenges impacting multiple aircraft types. The company is actively collaborating with engine manufacturers to expedite repair timelines and component deliveries, with the goal of returning grounded aircraft to service as soon as possible despite persistent constraints.
• Long Thanh International Airport (LTA): HVN is actively following and executing several projects at LTA, such as aircraft maintenance hangars, air catering, and ground services. The company aims to complete the Phase 1 project by 31/12/2025, in line with LTA’s expected operation following the Prime Minister’s directives.

3. Rights issue:

• Every 100 existing shares receives the right to buy 40.6 shares at VND10,000/share. The payment is expected in H2 2025. Following the issuance, HVN’s charter capital will rise 41% to VND31.1tn (USD1.2bn) from the current VND22.1tn (USD858mn), and shareholder equity will improve from negative VND9.3tn (USD361mn) to negative VND344bn (USD13mn). Including retained earnings, we expect HVN’s equity to turn positive within 2025.
• The expected proceeds of VND9tn will be allocated to: (1) settling due and overdue payables to suppliers and (2) repaying short-term and long-term borrowings, including a portion of refinancing debt. As of Q1 2025, HVN had VND6.3tn in overdue payables and VND4.3tn due within the year to suppliers. Outstanding short-term, long-term, and refinancing loans stood at VND2.8tn/123bn/3.9tn, respectively, with repayment obligations between 2025 and 2026 estimated at VND2–3tn/29bn/VND1–2tn.
• We note that, for Phase 2, the Government has directed the Ministry of Finance to develop a follow-up capital raising plan with a maximum issuance size of VND13tn. This plan is still under development and may involve transferring share purchase rights from the State to the appointed enterprises.

4. Management changes

• Dismissal of Mr. Daisuke Suzuki from his Board of Management (BOM) member position. This is due to his transition to a new role at All Nippon Airways Co., Ltd, involving pricing, sales, and marketing responsibilities. In compliance with the Antitrust Law of Japan, he is unable to continue serving as a BOM member at HVN.
• Appointing Mr. Hidekazu Isone to be a new BOM member. He has 32 years of experience in the Japanese aviation industry and currently serves as Executive Vice President and Director of Corporate Strategy for ANA Holdings, Inc., - Japan’s largest airline group.

Powered by Froala Editor