The Civil Aviation Administration of Vietnam (CAAV) has proposed that the Government provide urgent support for aviation firms, which have been badly affected by the coronavirus outbreak.
An airport worker (L) checks body temperature of a passenger at Tuy Hoa Airport in Phu Yen Province
In a document sent to the Ministry of Transport, CAAV said the number of air passengers has dropped by 98-99% due to the pandemic. Vietnamese airlines have suspended most air routes, and are now operating only limited routes for passengers from Vietnam to other countries, cargo flights, and domestic routes between Hanoi, Danang and HCMC, while offering very few flights.
National flag carrier Vietnam Airlines is the hardest-hit aviation firm. The airline’s revenues in the first quarter of 2020 were estimated at more than VND19.2 trillion, down some VND6.7 trillion compared to the same period last year. The airline suffered a loss of nearly VND2.4 trillion.
The Airports Corporation of Vietnam’s revenues in the first quarter were estimated at over VND4 trillion, down VND832 billion year-on-year. Its profit reached nearly VND1.86 trillion, down VND586 billion compared to the same period last year.
CAAV suggested that the Government should support aviation firms through tax reductions and tax payment extensions. They should also be allowed to delay payment of aviation fees until December 31.
CAAV also proposed that the Government erase or cut 50% of import taxes and environmental protection taxes on aviation fuel, and reduce take-off and landing fees and flight operation charges by 50% for airlines until December 31.
According to Dinh Viet Thang, head of CAAV, more than 200 planes are being parked at airports nationwide. Each airline is currently operating only a few flights for several hundred passengers per day.
Thang said the Vietnamese aviation sector has never faced such difficult circumstances. VOV
The aviation and transport sector are facing a range of challenges in the time ahead caused by the outbreak of COVID-19, with many being in need of urgent assistance from the government in order to restore production and business.
The Transport Ministry is asking for an aviation service fee subsidy for local airlines that have suffered an initial economic loss of over 30 trillion VND (1.29 billion USD) due to the COVID-19 outbreak.