Hanoi (VNS/VNA) – Local aviation enterprises have again asked for preferential loans to overcome difficulties caused by the pandemic.
The Vietnam Aviation Business Association (VABA), sent another written request to the Ministry of Transport to propose the Government give airlines preferential loans.
VABA Secretary General Bui Doan Ne said in the document: “Since the 4th outbreak of COVID-19, local airlines are in a dangerous situation as their revenue has decreased by 80 to 90 percent, cash flow is seriously falling and the accumulated financial and asset resources of the firms are exhausted.”
Reports from local airlines all showed that they needed help to solve difficulties in capital.
In this case, VABA asked MoT to consider, approve and make a proposal to the Government and the National Assembly and relevant ministries and branches to lend local airlines a refinancing package of 4 trillion VND to 6 trillion VND with no interest like the package Vietnam Airlines was given.
Specific loans will be based on the needs of each firm and according to their size, market share, contribution to the budget and ability to meet the budget.
The association proposed to lend local airlines between 25 trillion VND (1.08 billion USD) and 30 trillion VND in total, with preferential interest rates to help airlines with regular expenditure, procurement of supplies and equipment, implementation of programmes, maintenance, operations and development during and after the pandemic.
VABA also asked for adjustments to the environmental protection tax rate for jet fuel to a minimum level of about 1,000 VND per litre from the current 3,000 VND.
The document also asked MoT to allow the reduction of most service fees at airports to a maximum 50 per cent from January 1, 2022 to the end of December 2022, adding that…