Vietnam's government is planning to partially privatise Vietnam Airlines in 2008 through an initial public offering (IPO). The government says the carrier is one of 53 state-owned groups earmarked for part privatisation between 2007 and 2010. The airline has been highlighted as a model of success among the country's state-owned assets. Details have not been worked out, but 10-20% is likely to be sold through an IPO. The carrier operates around 40 aircraft and in November unveiled plans to double its fleet size by 2015, to 86 aircraft.
It is expected to face new competition in the coming years, in the form of more foreign low-cost airlines serving Vietnam as well as from new Vietnamese carriers the government is expected to approve for launch.
Source: Airline Business
