Ministry proposes aviation service fee subsidy due to COVID-19
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.
Hanoi (VNA) – The Transport Ministry is asking for an aviationservice fee subsidy for local airlines that have suffered an initial economicloss of over 30 trillion VND (1.29 billion USD) due to the COVID-19 outbreak.
In the latest document on the disease’s impact on thetransport sector sent to the Ministry of Planning and Investment, the TransportMinistry said that all Vietnamese airlines have grounded flights to and from China andthe Republic of Korea, cut 34 percent of flights to Taiwan (China) and 92percent of flights to Hong Kong (China). While all 160 flights to Japan operatingas usual so far, carriers are assessing the epidemic situation and there is ahigh possibility they will have to reduce services soon.
In the best scenario with the epidemic contained beforeApril, the Civil Aviation Administration of Vietnam (CAAV) estimated thatVietnam’s airlines would transport 48 million passengers, down 9.2 percent yearon year.
In the worse scenario with the epidemic put undercontrol before June, Vietnamese carriers would transport 45.7 millionpassengers, down 17 percent.
To support domestic carriers, the Ministry of Transport isrequesting the Government to provide aviation service fee subsidies for localairlines.
The ministry suggested cutting half of takeoff, landing andoperation service fees for domestic flights from March 1 to May 31. The durationmay depend on the disease’s developments.
It also proposed the Government assign the Finance Ministryto consider the exemption of import tariffs and environmental tax on aviationfuel for three months.
If that makes it difficult to balance the State budget, theministry proposed reducing 50 percent of import tariffs and environmental tax on aviation fuel, and allowing a delay of tax and budget contributions byairlines.
In the latest developments, national flag carrier VietnamAirlines announced the suspension of flights between Vietnam and Francestarting March 17 amid the worsening COVID-19 outbreak.
🦂 In addition, it has temporarily stopped flights betweenVietnam and Malaysia from March 18-31 due to the Malaysian government’s borderlock-down during the period./.
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Vietnam Airlines aircraft (Source: VNA) 
