Unknowns surrounding the Vietravel Airlines M&A deal.

It remains unclear whether T&T Group will rename the fledgling airline after gaining full control with a 75% stake in Vietravel Airlines.

A lightning-fast deal.

After much speculation, last weekend, both T&T Group Joint Stock Company and Vietravel Group Joint Stock Company announced the transfer of shares in Vietnam Travel Aviation Joint Stock Company (Vietravel Airlines) between Vietravel Group and T&T Aviation Transport and Trading Joint Stock Company (T&T Airlines), T&T SuperPort International Logistics Center and Port Company Limited (T&T SuperPort), and BVIM Fund Management Joint Stock Company.

Thus, the list of shareholders of Vietravel Airlines as of December 12, 2024 includes Vietravel Group; Vietnam Transport and Tourism Marketing Joint Stock Company - Vietravel; T&T Airlines, T&T SuperPort, BVIM Fund and 2 individual shareholders, Mr. Tran Doan The Duy and Mr. Doan Hai Dang.

It should be added that T&T Airlines, T&T SuperPort, and the BVIM Fund are all units within the T&T Group ecosystem.

Vietravel Airlines officially launched its first commercial flight on January 25, 2021.

Vietravel Airlines currently operates two A321s and one A320 on several regular domestic routes and international charter flights.

Despite numerous reports suggesting that T&T Group holds up to 75% of the capital in Vietravel Airlines, the relevant parties did not disclose the transfer value or the percentage of shares held by shareholders in Vietravel Airlines after this unexpected transfer transaction in their press release issued on December 12th.

However, according to current regulations, changes in shareholders or investors at airlines require the re-issuance of an air transport business license. Therefore, the unknown factor regarding the ownership percentage of the new shareholders belonging to the T&T Group will be "decoded" in the application for re-issuance of an air transport business license submitted to the Civil Aviation Authority of Vietnam by Vietravel Airlines.

Previously, in Air Transport Business License No. 01/2024/GPKDVCHK reissued by the Ministry of Transport on November 8, 2024, Vietravel Airlines had a charter capital of VND 1,300 billion, comprising four domestic legal entities as shareholders: Vietravel Group (holding 85.8% of charter capital); Vietravel Company (holding 13.7% of charter capital); Mr. Tran Doan The Duy (holding 0.25% of charter capital); and Mr. Doan Hai Dang (holding 0.25% of charter capital).

The company has two legal representatives (both Vietnamese nationals): Mr. Nguyen Quoc Ky, Chairman of the Board of Directors, and Mr. Dao Duc Vu, General Director of Vietravel Airlines.

This suggests that the Vietravel Airlines M&A deal will only begin after the travel airline submits its application for renewal of its air transport business license to the Vietnam Civil Aviation Authority at the end of September 2024. In this application, Vietravel Airlines makes no mention of the T&T Group's shareholder group.

"Even if this deal starts in late September 2024, with a timeframe of less than three months, this is one of the fastest M&A deals in the aviation sector," said an expert.

Completing the logistics ecosystem

T&T Group's decision to acquire Vietravel Airlines is seen as a multi-faceted move by Mr. Do Quang Hien, Executive Chairman of T&T Group.

Firstly, this allows T&T Group to quickly acquire an airline, instead of going through the complicated and lengthy procedures to obtain an air transport business license.

Secondly, although facing some financial difficulties, reviving Vietravel Airlines is still considered much more advantageous than investing in other airlines.

According to Mr. Do Quang Hien, Vietravel Airlines will become an important link in the chain of infrastructure, logistics, and aviation projects that T&T Group has been and is currently implementing.

Together with Quang Ninh Port, Quang Tri Airport, Vietnam's SuperPort logistics "mega-port" in Vinh Phuc, Nam Phuc Tho Industrial Cluster, the aviation-logistics-service-commercial-airport city industrial complex in Quang Tri, and now the crucial piece - Vietravel Airlines, T&T Group is contributing to promoting the development of multimodal transport and creating new breakthroughs for Vietnam's logistics industry.

"T&T Group's integrated infrastructure, logistics, and aviation industry ecosystem will create momentum to attract large domestic and foreign investors and businesses to focus on production and business," Mr. Do Quang Hien emphasized.

Conversely, having a strong shareholder group like T&T Group participate in Vietravel Airlines will help Vietravel Group alleviate the financial burden of maintaining the airline.

Mr. Nguyen Quoc Ky, Chairman of the Board of Directors of Vietravel Group and Chairman of the Board of Directors of Vietravel Airlines, said that the participation of three strategic shareholders, T&T Airlines, T&T SuperPort, and BVIM Fund, will open up new opportunities for Vietravel.

Airlines aim to enhance its competitiveness, expand its route network, and improve service quality.

This not only contributes to meeting the growing travel demands of passengers, but also affirms the position of Vietravel Airlines - the first tourist airline in Vietnam - in the domestic and international aviation market.

“This share transfer is also an important step in realizing Vietravel Airlines’ investment and development plan. With the support of the new shareholders, we are confident in the bright and sustainable future of Vietravel Airlines in the coming time,” Mr. Nguyen Quoc Ky affirmed.

Source: https://baodautu.vn/an-so-tai-thuong-vu-ma-vietravel-airlines-d232510.html