Vietnam Airlines to restart privatisation

   
     

A stalled attempt by Vietnam Airlines at privatisation will resume as stock markets continues to recover from the global financial crisis.

The airline’s chief executive, Pham Ngoc, has revealed that the state-owned carrier aims to complete its initial public offering by the end of 2012, the Thanh Nien Daily reported.

According to the publication, the sale of the airline’s shares may add to investor interest in the privatisation of state-owned companies as the nation targets annual economic growth of around 7 percent until the year 2020, Communist Party chief Nong Duc Manh said.

The country also wants to almost triple per capita income to US$3,000 by 2020, according to Mr Manh.

Vietnam Airlines aims to boost revenue to VND45.5 trillion (US$2.33 billion) and passenger numbers to 14 million in 2011 as economic growth spurs demand for air travel, the publication reported.

Vietnam Airlines

“It’s quite safe to assume that demand for airline travel is expected to grow in line with domestic income growing,” Manulife Asset Management (Vietnam) head of equities Mark Canizares said.

“Domestic travel alone would make any listing in this sector quite attractive.”
Source = e-Travel Blackboard: M.H
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