Besieged airline industry asks government for $ 1.17 billion loan
Plane to Tan Son Nhat Airport in HCMC in April 2020. Photo by VnExpress / Quynh Tran.
The Vietnam Aviation Business Association has asked the government for a loan of VND 27 trillion ($ 1.17 billion) to revive the aviation industry.
This is the third time VABA has done so since early 2020, when international and domestic travel restrictions due to the Covid-19 pandemic put the industry at its lowest.
He also wants the government to postpone airline loans until the end of 2024 and reduce airport charges such as landing fees.
VABA wants flights resumed to places that have contained Covid-19 like Australia, India, China, South Korea, Japan and Europe.
He urged the Ministry of Transport to execute programs to boost domestic tourism.
Tran Bao Ngoc, head of the ministry’s transport department, agreed the aviation industry needs support to come out of its slump, and pledged to heed VABA’s demands and address those that did not fall under within its jurisdiction, such as deferring loans with the government.
Aviation was one of the hardest hit sectors in 2020. Air passenger numbers fell 43% to 66 million, while freight transport fell 15% to 1.3 million tonnes.
Landing fees and other ground services have been reduced by 50 percent and fees for some specialized aviation services have been waived for six months, from March to September.
The environmental protection tax on aviation fuel has been reduced by 30 percent.
The government also approved a bailout package including refinancing and loan renewals for Vietnam Airlines.