|
|
|
|
Temasek grabs stake in Vietnam's
Pacific Airlines
HANOI -
The Vietnamese joint-stock airline venture Pacific
Airlines, 80% of which is owned by the Ministry of
Finance, has been valued at US$167 million, by a
company charged with restructuring the struggling
carrier.
The valuation came from Temasek
Holdings, a leading Singaporean state-owned
investment company, based upon the airline's
current standing and a projected increase in value
in the future.
Negotiations between
Pacific Airlines and Temasek have resulted in an
agreement to allow the investment company a 30%
stake - worth around $50 million - in the carrier,
the maximum stake that overseas investors are
permitted to hold in Vietnamese companies.
Deputy finance minister Le Thi Bang Tam
said that the restructuring plan has so far
involved investigations aiming to reform the
business's management board, stabilize activities
and obtain debt extensions, and added that this
has enabled the carrier to begin running at a
profit again, pay off several loans and balance
expenditures, allowing the hire of new aeroplanes.
These measures are part of a proposed
five-year restructure plan, based on a new
business strategy and model, which has been drawn
up by the MoF and Temasek Holdings. However, the
reform plan will place great strain on the carrier
as well as demanding major governmental support,
and although numerous international airlines and
foreign investors have expressed interest in
buying a stake in the airline, it is uncertain
whether or not foreign investment can salvage the
company.
The Temasek investment will
initially be used to pay foreign debts and reform
the carrier under a new model, which will include
renovations of the airline's staffing policy,
services offered and marketing strategies. Luong
Hoai Nam, the Pacific Airlines director, said the
carrier is aiming to offer a value-based model,
which will differ from low-cost air services by
still providing food and entertainment on short
flights, but will still offer reduced prices.
(Asia Pulse/VNA) |
|
|
|
|
|
|
|
 |
|
|
|
|
|
All material on this
website is copyright and may not be republished in any form without written
permission.
© Copyright 1999 - 2005 Asia Times
Online Ltd.
|
|
Head
Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong
Kong
Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
|
|
|
|
