Bamboo Airways seeks refinancing loan with interest rate of zero percent

Hanoi (VNS/VNA) - In a document sent to the Ministry of Transport, the private airline Bamboo Airways proposed a preferential loan and some tax cuts to overcome the COVID-19 crisis.

The air carrier asked the ministry to consider and propose to the Government and the State Bank of Vietnam (SBV), the country’s central bank, to issue a resolution to allow commercial banks to provide a long-term refinancing loan of 5 trillion VND (216 million USD) with a 0-percent interest rate, which is similar to the 4 trillion VND loan package applied to Vietnam Airlines.

Bamboo Airways also proposed a rise in the environmental tax reduction on aviation fuel to 50 percent from 30 percent, as well as cut (possibly 100%) in some fees and other service prices like airport services and flight operation services until the end of this year.

The airline also asked for the extension of some supportive policies for employees, and to add policies for employers.

According to Bamboo Airways, the tax and fee reduction policies for airlines in 2020 have helped the air carrier cut costs by about 120 billion VND, which account for 1.4 percent of the total cost. Of which, 70 billion VND was from the flight fuel tax reduction, 27 billion VND was from the 50 percent discount policy for takeoff/landing services and 23 billion VND from the flight control discount.

Earlier, Bamboo Airways revealed that in 2020, the airline reported a profit of more than 400 billion VND, up 34 percent over 2019, despite the impact of the COVD-19 pandemic.

This is the first time a private airline has asked for a large refinancing loan with an interest rate of 0 percent. The SBV provided refinancing loans for Vietnam Airlines to maintain its operations and overcome the pandemic./.