Airlines forecast to lose over 15 trillion VND in 2021

Illustrative photo (Source: VNA)

Hanoi (VNA) – Vietnamese airlines are projected to post losses totalling 15 trillion VND (650 million USD) in 2021, with their revenue continuing to plunge from that of last year, according to the Vietnam Aviation Business Association (VABA). 

The aviation sector has so far borne the brunt of three waves of COVID-19 outbreaks, which have frozen international travel. In the first two months of this year, their international passenger throughput amounted to 66,600, down 98.8 percent on-year.

These figures were mentioned in the VABA’s proposal for credit assistance to aviation companies, which was recently submitted to the Ministry of Planning and Investment.

Earlier, Vietnam Airlines obtained a credit package worth 4 trillion VND. Besides, Vietjet Air has cried for a credit package of between 4-5 trillion VND for 2021 – 2023, with interest rate reduced by 4 percent. Meanwhile, Bamboo Airways has called for a refinanced zero-percent-interest-rate long-term loan of 5 trillion VND and long-term loans worth 5 trillion VND from commercial banks with subsidized interest rates.  

The VABA also proposed reducing the environmental tax on fuels to 900 – 1,000 VND per litre and extending deadlines for paying taxes, including corporate income tax, value-added tax, and personal income tax./.

VNA