The Government is considering a 25 trillion VND zero-interest loan package for all Vietnamese airlines in a bid to support the industry during the pandemic. (Photo: VNA) The loans,according to VABA, are intended to help the airlines to cover recurringexpenses, acquire supply and new machinery and to perform maintenance dutiesduring the pandemic. The loan amount will be subject to the size of eachairline, its share of the market and the amount it contributed to the Statebudget.
Theassociation cited a 4 trillion VND, zero-interest, 3-year-term loan granted toVietnam Airlines as a basis for their proposal, saying the Government mustensure a level playing field. In addition, it has also demanded a 70 percentcut in environmental tax for all the airlines.
VABA's ChairmanPham Viet Dung said the tax was no longer applicable as almost allinternational and domestic flights have been shuttered. VABA, therefore, askedthe Government to reduce the tax from 3,000 VND, or 0.13 USD, to 1,000 VND fromnow until June 6, 2022.
In addition,VABA asked the Government to consider a proposal to slash 30 percent off theairlines' income tax for 2020 and the first half of 2021, 50 percent off VATtax, industry workers' income tax and 50 percent off taxable amount on spareparts for aeroplanes.
Theassociation said the third and fourth outbreak of the novel coronavirus in Vietnam resulted in a 90 percent drop in revenue for the airlines, compared to thepre-pandemic level.
A VABA reportsaid almost all international and domestic flights have been stopped since May.Revenue dropped by 60 percent compared to the previous period as airlinesreported a combined loss of 16 trillion VND in 2020.
The airlineshave had to pay more than 100 billion VND (4.4 million USD) every day while80-90 percent of their fleets were grounded, according to Bui Doan Ne, Vice Presidentof the Vietnam Aviation Business Association (VABA).
Short-termdebts due for payment among the three largest airlines have reached a total of 36trillion VND, with VNA alone accounting for 20 trillion VND. VABA has askedbanks for loans worth 30 trillion VND, of which 10-12 trillion VND allocated toVNA, 10 trillion VND to Vietjet, 5 trillion VND to Bamboo Airways, 5.7 trillionVND to Pacific Airlines and 1 trillion VND to Vietravel Airlines.
In a recentdevelopment, VABA has sent a number of proposals on how to support the airlineindustry's recovery. The proposals include faster vaccination of thepopulation, a standardised COVID-19 testing protocol, internationallyrecognised vaccine passports and the establishment of safe travel corridors forinternational visitors./.
VNA
