Additionally, banks have refused to extend any credit to the airlines, which is further increasing its risk of facing legal action and proceedings along bankruptcy, as the airline also has a great amount of arrears. Media reports have indicated that the condition is ‘extremely dire’.

The airlines totaled its losses around the end of the first quarter of 2021 which amounted to 14.2 trillion dong and the debt to equity ratio was 57.8x in the same quarter. In an effort to mitigate its losses, the company is selling 11 Airbus A321 aircraft via an auction. The airline is 86 percent owned by the government and the rest of the 8.77 percent share is held by Japan’s ANA Holdings.

There is no doubt that aviation was one of the hardest-hit sectors during the Covid-19 pandemic, which has directly contributed to its recent bankruptcy. The Vietnamese ministry released a statement, saying, “Airline businesses have almost reached insolvency, while the sector is predicted to continue to face a lot of challenges in 2021. Even if the pandemic is controlled, it’s expected that only by 2024 can the industry bounce back to the pre-Covid-19 levels.”

They also added that other airlines like Bamboo Airlines and Vietjet were also being affected and drained of their financial resources, where Vietjet saw a 10 trillion dong loss for its operations.

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Bamboo Airlines will fly three weekly flights both from Hanoi and Ho Chi Minh. While flights from Heathrow to Ho Chi Minh will operate on Tuesdays, Thursdays, and Sundays, those to Hanoi will operate on Monday, Wednesdays, and Saturdays.

Last year, it was reported that Bamboo Airlines will fly to other destinations in Europe as well such as Prague and Munich, however, the operations never took off due to the coronavirus pandemic. It is being reported that the carrier will soon fly to other destinations such as Frankfurt.

Last year, Bamboo Airways was granted a permit to fly to the US by the Department of transformation, media reports said. The carrier was the second Vietnamese carrier to be permitted by the US to fly to the country. The other carrier that was also granted a permit was Vietnam Airlines. A direct flight would bring the travel time down to 14 to 16 hours, generally, it takes 18 to 21 hours to travel between the two countries.

It is reported that Bamboo Airways will begin operating in the US by the end of 2021 or early 2022. The carrier will now file for paperwork with the Federal Aviation Administration (FAA), the Transportation Security Administration and other relevant agencies in the US.

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Bamboo Airways is the second carrier to be permitted by the US to fly to the country. The other carrier that was also granted a permit was Vietnam Airlines. It is reported that Bamboo Airways will begin operating in the US by the end of 2021 or early 2022.

The carrier will now file for paperwork with the Federal Aviation Administration (FAA), the Transportation Security Administration and other relevant agencies in the US.

Currently, there are no direct flights operating between Vietnam and the US. A direct flight would bring the travel time down to 14 to 16 hours, generally, it takes 18 to 21 hours to travel between the two countries.

Vietnam will soon have a new carrier operating in the country in Vietravel Airlines.  The newcomer received approval to launch in December. Earlier, Vietravel was planned to launch in 2021.

Nguyen Quoc Ky, CEO, Vietravel Airlines told the media, “We will fly domestically first, targeting the 100 million population market. In fact, it is not a small market. Our July domestic travel revenue is already much higher than before the pandemic.”

Vietnam’s State Capital Investment Corp (SCIC) will inject more money into Vietnam Airlines to help the flag carrier cope with the impact of the coronavirus pandemic. It is reported that SCIC could invest up to $293.44 million to buy new shares of the carrier.

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The carrier will reportedly travel to South Korea, Taiwan, Hong Kong, and several Southeast Asian destinations in its first phase of resuming international operations.

Vietnam Airlines is planning to operate daily return flights between Hanoi/Ho Chi Minh City and the Incheon International Airport near Seoul, South Korea and up to four return flights a week between Hanoi/HCMC and Busan City.

The airline is also planning three to four return flights a week from Hanoi and HCMC to Hong Kong and Taiwan.

Vietnam Airlines chief executie Duong Tri Thanh revealed that the airline awaits permission from the authority. “Vietnam Airlines is ready to resume flights as soon as the restrictions are lifted,” he told the media.

Last month, it was reported that Vietnam Airlines is planning to add as much as 50 new aircraft to its fleet. The news comes amid a time when the global aviation is accumulating losses in billions due to the coronavirus pandemic.

Vietnam’s Civil Aviation Authority expects local airlines to lose hundreds of millions of dollars. Vietnam Airlines is forewarning a loss of $843 million in 2020. In the first quarter of 2020, the airline lost $110 million.

Reportedly, Vietnam Airlines is planning to acquire 50 more aircraft at a cost of approximately $3.8 billion.

Vietnam is one of the fastest-growing aviation sectors in the world. Besides Vietnam Airlines, other carriers such as Jetstar Pacific, Vietjet Air, Vietnam Air Services Company (VASCO), and Bamboo Airways also operate in the region.

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According to media reports, the joint venture between Vietnam Airlines and ST Engineering would operate in Vietnam Airlines’ facilities in Hanoi Noi Bai International Airport, and Tan Son Nhat International Airport in Ho Chi Minh City.

Vietnam Airlines chief Duong Tri Thanh told the media, “The establishment of a joint venture will bring more aircraft and added value to Vietnam. Likewise, it will help to improve the technical level of the domestic aircraft maintenance industry as well as the competitiveness of the national airline.”

Last year, ST Engineering also signed an agreement with Vietnam Airlines’ MRO unit. Called Vietnam Singapore Technologies Engineering Aerospace (JVCo), it began operations last year and provides its services to various aircraft types, including A320, A350, Boeing 787 and ATR72.

Back then, ST Engineering aerospace sector president Lim Serh Ghee told the media that the partnership with Vietnam Airlines, which has existing maintenance facilities in the country, enables ST Engineering to set-up capabilities within a very short timeframe and also allows them to start operating with a ready baseload.

In January, Vietnam Airlines expanded its codeshare agreement with Delta Air Lines, after receiving the approval of the US Department of Transportation. The two carriers signed the first codeshare agreement in 2010.

According to the deal, Vietnam Airlines will display Delta Air Lines’ designator code (DL) on Vietnam Airlines’ codeshare flights. Similarly, Vietnam Airlines’ designator code (VN) will also be displayed on Delta Air Lines’ flights and also on its regional affiliates, including Compass Airlines, Endeavor Air, GoJet Airlines, Republic Airlines, and SkyWest Airlines.

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