Vietravel Airlines is planning to increase its charter capital by six times its current size to $323 million by 2025 to enable it to acquire new aircraft, Nguyễn Quốc Kỳ Chairman of Vietravel Holdings said while speaking to VnExpress: “We foresee raising the charter capital to $348 million by 2030. By that time, if business is favourable, $93 million in accumulated profits could be used to inflate the capital still further.”
“Investing in fleet expansion is important for a new airline to survive and grow,” Kỳ told VnExpress. “Only with a large fleet can we make profits.”
“The airline is currently in talks with lessors to secure more aircraft,” Kỳ confirmed.
The capital increase will occur through shareholder investment - an additional $29.5 million by 2025 will take current shareholders’ total investment to $84.5 million - as well as selling minority shareholdings to outside investors and other financial tools, he further added. Vietravel Holdings currently owns 85.8% of Vietravel Airlines’ shares.
Vietravel operates a fleet of three leased A321-200.
After commencing its first international flight in December 2022, Vietravel Airlines operates daily flights between Hanoi and Bangkok Suvarnabhumi. The airline is expected to launch Ho Chi Minh City-Bangkok route from February 9, 2023.