Illustrative image (Photo: VNA) Hanoi (VNA) - TheVietnam Aviation Business Association (VABA) has proposed the Governmentlend domestic airlines a credit package of between 25-27 trillion VND (1.08-1.17 billion USD) at a preferential interest rate fora three-four year term.
Thisis one of recommendations the association sent recently, asking the Governmentstimulate the sector as it is facing serious impacts caused by the COVID-19pandemic.
VABAalso called for the extension of the period of exemption and reduction ofaviation service charges until the end of 2021. At the same time, it asked theGovernment to direct the Ministry of Transport and the Airport Corporation of Vietnam to cut 50 percentof all airport service charges.
“Airlinesexpect the Government to ask the National Assembly Standing Committee toallow a 70 percent, or at least 50 percent, cut of environmental protection taxfor flying fuel by the end of 2021, and consider and direct speeding up theconstruction progress of upgrading runways at Noi Bai and Tan Son Nhat international airports, which should becompleted in six months,” VABA noted in its recommendation document.
VABAsaid the pandemic had recurred in some localities, especially Da Nang, akey aviation market. The outbreak is also having a psychological impacton society, causing a sudden drop in demand for domestic travel and airtravel.
Althoughairlines have made efforts to limit losses such as cutting total costs from 50 percentto 70 percent year-on-year, negotiating with partners to reduce debt and interestrates, selling aircraft, transferring assets, reducing salaries for all staffand decreasing airfares, however all airlines face serious cash flow depletion.
TheInternational Civil Aviation Organisation recently forecast that it wouldtake until 2024 for the world's airlines to recover their business tolevels seen in 2019. Vietnamese airlines will suffer an estimated loss of morethan 4 billion USD thisyear.
VABAalso petitioned Prime Minister Nguyen Xuan Phuc allow reopening flight routes to countriesthat have controlled the outbreak, and studying standards on disease preventionand infection control in air transport, allowing tourists to enter Việt Nam ifthey meet such requirements.
“Morethan ever, Vietnamese airlines all are in need of timely support from theGovernment, ministries and agencies,” VABA said./.
VNA
