Illustrative photo (Source: VNA) Theairlines have had to pay more than 100 billion VND (4.4 million USD) every daywhile 80-90 percent of their fleets were grounded, according to Bui Doan Ne, VicePresident of the Vietnam Aviation Business Association (VABA).
Duringthe first half of the year, demand for air travel fell by 60-70 percentcompared to the pre-pandemic level. Since the end of May, sales have plummetedby 80-90 percent, said the airlines.
"COVID-19has effectively put a stop to most, if not all international routes and it maytake years for the airlines to recover," Ne said.
"That'swhy we are asking the banking sector to provide privately-owned airlines with 0percent interest loans in the amount of 4 trillion VND over a three-year term.In addition, the airlines ask to apply for the State's support loan package of 25trillion VND on 3-4 year terms," he said.
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.
TranThanh Hien, VNA's head of accounting, called for a comprehensive policy tosupport the airlines which includes relaxed rules on collateral, reducedinterest rates and payment deadline extension, among others.
"Asof now, no airline is capable of surviving the pandemic without ample supportfrom the Government, their shareholders and partners," Hien said.
Arepresentative from Bamboo Airways asked the banks to extend their interestrate cut until the end of 2022 while allowing airlines access to newloans.
NguyenThanh Tung, Deputy General Director of Vietcombank (VCB) - one of the largestcommercial banks in the country - said to date it has provided the airlines 16trillion VND in credit at a preferential interest rate.
"Weare willing to support the airlines. However, we must ask the SBV to give usmore credit room. As of now, we have reached our limits and are unable to grantlarge loans," said Pham Quoc Thanh, General Director of HDBank.
SBVDeputy Governor Dao Minh Tu said the government views the airlines as a pillarof the economy. The SBV will consider the banks' request to raise their creditlimit.
Meanwhile,the SBV is to work together with the Ministry of Planning and Investment, theMinistry of Transport and the Ministry of Finance to build a support packagefor the airlines./.
VNA
