Vietnamese airlines forecast to lose over US$650m in 2021

Earlier, Vietnam Airlines obtained a credit package worth VND 4 trillion. — Reuters pic
Earlier, Vietnam Airlines obtained a credit package worth VND 4 trillion. — Reuters pic

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HANOI, March 23 ― Vietnamese airlines are projected to post a total loss of VND 15 trillion (US$650 million) in 2021, with their revenue continuing to plunge compared to that of last year, reported Vietnam News Agency (VNA) according to the Vietnam Aviation Business Association (VABA).

The aviation sector has so far borne the brunt of three waves of Covid-19 outbreaks, which has frozen international travel. In the first two months of this year, their international passenger throughput amounted to 66,600, down 98.8 per cent on-year.

These figures were mentioned in the VABA’s proposal for credit assistance to aviation companies, which was recently submitted to the Ministry of Planning and Investment.

Earlier, Vietnam Airlines obtained a credit package worth VND 4 trillion. As a result, in the proposal, Vietjet Air has asked for a credit package of between VND 4-5 trillion for 2021-2023, with an interest rate reduced by 4 per cent.

Meanwhile, Bamboo Airways has called for a refinanced zero-percent-interest-rate long-term loan of VND 5 trillion and long-term loans worth VND 5 trillion from commercial banks with subsidised interest rates.  

 The VABA also proposed reducing the environmental tax on fuels to VND 900-1,000 per litre and extending deadlines for paying taxes, including corporate income tax, value-added tax, and personal income tax. ― Bernama

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