VietNamNet Bridge – The Ministry of Transport is seeking approval from the Politburo to allow the private sector to operate Phu Quoc International Airport off mainland Kien Giang Province.

A Jetstar Pacific aircraft sits at Phu Quoc International Airport off mainland Kien Giang Province. The Ministry of Transport has submitted to the Politburo two plans to allow private investors to operate this airport

On Monday, Transport Minister Dinh La Thang sent the Politburo two plans for private investors to manage all operations of the airport except flight control and military   facilities or operate the passenger terminal and Airports Corporation of Vietnam (ACV) will be in charge of other operations.

With the second plan, ACV will have to incur big losses as it will have to cover huge operation and maintenance costs, according to the ministry.

The ministry will map out a detailed plan to transfer the operation rights to Phu Quoc airport for submission to the Prime Minister for consideration and approval if it gets the green light from the Politburo.

The ministry wants to begin a pilot plan to transfer the operation rights to Phu Quoc airport before expanding this plan to other airports currently managed by ACV.

Earlier this year, the ministry disclosed a plan to transfer the operation rights to E Hall of Noi Bai International Airport in Hanoi City before adding Phu Quoc airport to the plan in its document submitted to the Prime Minister.

The ministry hopes the plan, if approved, will help raise funds for other infrastructure projects, including the multi-billion-dollar Long Thanh international airport in the southern province of Dong Nai.

Phu Quoc airport was put into service in late 2012 and cost some US$190 million, including big spending on site clearance. The ministry wants to start the plan with this airport as it is not too big by scale and there are no frequent military activities there. The number of passengers going through this airport has grown steadily since its opening and the resort island of Phu Quoc holds huge tourism growth potential.

Local investors T&T group and Imex Pan-Pacific Co. Ltd. (IPP) have written to the ministry asking for support to buy the operation rights to Phu Quoc airport. Vietnam Airlines and VietJet Aviation Joint Stock Co. (VietJetAir) have expressed keen interest in Noi Bai airport while Jetstar Pacific wants to operate the old passenger terminal at Danang International Airport in central Vietnam for 20-50 years for low-cost services.

However, the ministry has not made any decision as if it awaits approval from the Politburo and the Prime Minister.

The ministry is collecting comments from relevant agencies to improve the plan to transfer the operation rights to a number of airports in the country provided that State agencies will continue to take charge of issues involving security and defense, airspace, air route and flight control at airports.

The State will decide service charges at the airports to be operated by private investors and the latter will be allow to operate the facilities which the State does not need to retain in line with the existing regulations. The investors will be responsible for operation and maintenance costs.

Tenders will be organized to select the best operators to ensure passengers will enjoy better services and prevent unhealthy competition after airports are transferred.