Vietnamese Airlines Request Over $1bn Bailout Package


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According to the Hanoitimes, Vietnam Aviation Business Association (VABA) has proposed the government to provide a credit aid package of VND25-27 trillion ($1.07-1.16 billion) to support the aviation industry that the Covid-19 pandemic has seriously impacted.

VABA claims that the government support would improve enterprises’ financial state. To further facilitate this, the government should consider extending the deadline of debt payment for aviation industry players until the end of 2024. The proposition also includes reducing take-off, landing, and navigation service fees. Besides, the association prompts the government to start opening borders for international flights’ resumption, such as flights to Europe, India, Australia, China, South Korea, and Japan.

“The Ministry of Transport should carry out a study to assess the impacts of the pandemic on the development of the aviation industry in both short- and long-term, which would serve as a basis to reform the state administration in this field accordingly,” stated VABA.

VABA is reaching out to the government for the third time already since the beginning of the pandemic. Last year, the government reduced navigation fees for domestic airlines and take-off and landing fees by 50%. Vietnam Airlines, which controls over half of Vietnam’s domestic market share, also got approval to obtain over $518 million in refinancing loans from Vietnam’s central bank.

Source: Hanoitimes