Tuesday,  Jul 27, 2021,16:38 (GMT+7) 0 0
Aviation sector sees long, uneven recovery
The Saigon Times
Thursday,  Jun 17, 2021,07:09 (GMT+7)

Aviation sector sees long, uneven recovery

The Saigon Times

Aircraft are parked at a local airport. If the pandemic is brought under control, it is not until 2024 that the aviation industry can recover to the way it was before the pandemic - PHOTO: VNA

HCMC - During the third wave of the coronavirus in early 2021, the revenue of the aviation sector plummeted by 80% year-on-year due to a sharp decline in cargo and passenger transport, making life tough for the sector if the pandemic is not controlled soon.

Revenue from air transport in 2020 dipped by over 61% against 2019, according to a draft prepared by the Ministry of Planning and Investment.

Due to the complicated development of Covid-19 and passengers’ worries about the risks of infection, the aviation sector is expected to continue a bumpy ride this year as the fourth wave of Covid-19 now is proving more devastating.

If the pandemic is brought under control soon this year, it is not until 2024 that the aviation industry can recover to the way it was before the pandemic, Thanh Nien Online reported.

Vietnam Airlines’ first quarter losses are estimated at VND4.8 trillion and the losses might reach VND10 trillion in the first six months of the year, according to the ministry.

The carrier reported an overdue debt of VND6.24 trillion, moving to the verge of bankruptcy, while commercial banks have refrained from disbursing or lending Vietnam Airlines as they were yet to access the Government’s relief package worth VND12 trillion for the national flag carrier.

As for private airlines such as Bamboo Airlines and Vietjet, the Ministry of Planning and Investment said that in 2020, these airlines managed to optimize their transport activities and maintain their business by transferring assets and financial investment projects. However, the airlines are forecast to face hardships this year as their financial sources are running out.

To rescue the aviation sector, the ministry proposed the Prime Minister direct the State Bank of Vietnam to map out a plan to offer interest rate support of 4 percentage points to the airlines in the 2021-2023 period to help them maintain their operations.

Besides, the ministry also proposed the Government ask the Ministry of Transport to extend the 50% cut in fees for take-off, landing, aircraft navigation and many other flight-related services until the end of 2021.

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