Vietnam Airports Corporation (ACV) cut 3,698 employees, or 34% of its workforce at the start of the year, in the first nine months. Its pre-tax profit fell by about 2% in the third quarter, while Long Thanh Airport is being prepared to begin operations at the end of the year.
According to ACV's consolidated third-quarter financial report, the company had 7,113 employees as of September 30. Its workforce fell for three consecutive quarters. ACV cut about 1,360 employees in the third quarter alone.
ACV spent more than VND2,630 billion on employees in the first nine months, about VND400 billion less than in the same period last year. The company restructured its organization and reduced the number of departments from 17 to 12.
ACV's nine-month results
ACV recorded consolidated net revenue of VND6,066 billion in the third quarter, down 6% from the same period last year. Net profit reached VND2,083 billion, a 35% decline.
For the first nine months, the company's net revenue reached VND19,226 billion, a slight year-on-year increase. Pre-tax profit was VND10,780 billion, down about 2%.
Long Thanh Airport is one of ACV's major investment projects. As of September 30, construction in progress for the project's first phase was valued at VND44,129 billion, nearly VND9,900 billion more than at the start of the year. It made up most of ACV's total construction in progress, valued at VND47,376 billion.
The company's investment plan for this year totals VND40,573 billion. ACV expects management, operations, maintenance and depreciation costs to rise when major facilities, including Long Thanh Airport, begin operating.
ACV shares fell during trading sessions last week on UPCoM. The price fell from VND42,900 at the October 26 opening high to VND39,700 at the close on October 31.
Long Thanh needs a large workforce before operations begin
While ACV is reorganizing its workforce across the system, Long Thanh Airport is completing facilities and preparing the resources needed for operations.
According to a report the Ministry of Construction sent to the government in October, essential first-phase facilities at Long Thanh Airport were about 86% complete by contract value. That was VND74,284 billion out of VND86,349 billion. Four of the 16 main construction packages were complete, while work continued on the other 12.
A labor shortage has also been recorded on the package covering internal airport roads and technical infrastructure. About 1,440 people are currently working at the site, compared with a need for 2,515, leaving a shortfall of more than 1,000 workers.
ACV said the first phase of Long Thanh Airport will need nearly 14,000 workers in five areas: 2,961 in airport operations, 881 in air traffic management, 828 in air transport, 8,909 in aviation services and 190 in airport administration. In addition, about 1,544 workers are needed across 10 groups of direct employees.
Construction, testing and operational preparations are moving forward at the same time. ACV aims to put the first phase of Long Thanh Airport into operation at the end of the year.
In its latest announcement, ACV said the airport is expected to begin operations at midnight on December 24. It is expected to handle up to about 366 flights a week, including 322 domestic and 44 international flights.
Sources: Dân Trí
