Vietnam Airlines recorded a ‘new record’ profit in the first quarter of this year of VND 4.53 trillion or US$178 million. This was, however, only after the company leasing planes to Vietnam Airlines subsidiary, Pacific Airlines, agreed to write-off US$220 million worth of debt in exchange for the return of the planes.

For background, Vietnam Airlines has been struggling for years but as the national carrier key decision makers have pulled out just about all stops to keep the airline alive. For example, the firm has been in negative equity for three years and provided financial statements well past their due date which really should have seen it delisted from the Ho Chi Minh City Stock Exchange. It is, however, still there with changes to listing regulations tabled that would give the government the ability to intervene in delisting-assessments in ‘special cases’.

Vietnam’s domestic airline industry has taken a series of hits over the last five years that have seen not only Vietnam Airlines at risk of being delisted, but also two airlines, Bamboo Airways and the aaforementioned Pacific Airlines, on the cusp of disappearing altogether.For more information see: Vietnam’s Airline Industry Turbulence: Unpacked