HCMC – The Civil Aviation Authority of Vietnam (CAAV) has proposed the Ministry of Transport extend the 50% reduction in the landing and takeoff fees for domestic flights until the end of 2022 to support local carriers affected by the pandemic.
CAAV proposed the ministry allow applying the minimum fee of zero dong to specialized aviation services from January 1 to December 31 this year, the local media reported.
The proposals were made as the Government is still adopting many measures to remove obstacles and financial woes facing companies, including airlines.
The aviation sector is gradually recovering, but global economic and geopolitical uncertainties have pushed up prices of jet fuels, leading to a spike in costs for local airlines, according to the aviation authority.
The fee reductions will help airlines overcome financial difficulties and develop further.
Until now, Vietnam has restarted international air services to over 20 nations and territories, while local carriers have resumed nearly 60 domestic air routes with up to 800 daily flights.
CAAV forecasts in 2022, the country will see a year-on-year upsurge of 170%-200% in air passenger traffic but will witness a drop of 40% against 2019. The domestic air passenger number will amount to 33.6-36 million, up 124%-141% against 2021, but down 5%-10% from 2019.
In addition, air cargo throughput is expected to amount to over 1.5 million tons in 2022, up 16.4% year-on-year and 21.2% against 2019.
The 50% reduction in the landing and takeoff fees for domestic flights was applied from January 1 to December 31 last year, helping the local carriers save over VND110 billion.