Government considers zero-interest loans for all airlines | Business

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The government is considering a zero-interest loan program of VND 25 trillion for all Vietnamese airlines to support the industry during the pandemic. (Photo: VNA)

Hanoi (VNA) – The Government office instructed the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Transport and the State Bank of Vietnam to study a proposal from the Vietnam Aviation Business Association (VABA), in which the airline industry is to have access to 25 trillion VND (over 1.1 billion dollars) of zero interest loans.

The loans, according to VABA, are intended to help airlines cover recurring expenses, acquire supplies and new machinery, and perform maintenance tasks during the pandemic. The amount of the loan will depend on the size of each airline, its market share and the amount it has contributed to the state budget.

The association cited a 4 trillion dong, zero-interest, 3-year loan to Vietnam Airlines as the basis for its proposal, saying the government must ensure a level playing field. In addition, he also demanded a 70% reduction in the environmental tax for all airlines.

VABA chairman Pham Viet Dung said the tax was no longer applicable as almost all international and domestic flights were closed. VABA has therefore called on the government to reduce the tax from VND 3,000, or US $ 0.13, to VND 1,000 by June 6, 2022.

In addition, VABA asked the government to consider a proposal to reduce airline income tax by 30% for 2020 and the first half of 2021, by 50% on VAT, the income tax of airlines. industrial workers and 50% on the taxable amount on spare parts. for airplanes.

The association said the third and fourth outbreaks of the novel coronavirus in Vietnam resulted in a 90% drop in airline revenues, from pre-pandemic levels.

A VABA report said almost all international and domestic flights have been halted since May. Revenue fell 60% from the previous period, with airlines reporting a combined loss of VND 16 trillion in 2020.

Airlines had to pay more than 100 billion VND ($ 4.4 million) every day while 80 to 90 percent of their fleets were stranded, according to Bui Doan Ne, vice president of the Vietnam Aviation Business Association (VABA ).

Short-term debts due among the three largest airlines totaled VND 36 trillion, with VNA alone amounting to VND 20 trillion. VABA asked banks for loans worth VND 30 trillion, including VND 10 to 12 trillion allocated to VNA, VND 10,000 billion to Vietjet, VND 5,000 billion to Bamboo Airways, 5.7 trillion from VND to Pacific Airlines and 1,000 billion VND to Vietravel Airlines.

In a recent development, VABA sent out a number of proposals on how to support the recovery of the airline industry. The proposals include faster vaccination of the population, COVID-19[female[feminine test protocol, internationally recognized vaccine passports and establishment of safe travel lanes for international visitors./.


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