Aviation enterprises propose to support input costs

To facilitate recovery and growth for firms airthe Government has passed a Resolution to reduce 50% of the environmental protection tax rate for jet fuel to 1,500 VND/liter in 2022.

Over the past 2 years, the COVID-19 pandemic has caused the aviation industry to face many difficulties. For enterprises that have just entered the market, the impact is even greater due to the lack of reserve resources. Therefore, many airlines have proposed support from input costs such as operating fees, or parking fees at airports.

Passengers prepare to check-in for international flights at Terminal T2, Noi Bai International Airport. (Photo: employees)

“According to the Government’s policy, from March 15 to open tourism to international visitors. This is good news for airlines. However, now that we open the door, we are going to go ahead, there is still a long way to go. The process of recovery and growth will be somewhere between July and December. Lower input costs will reduce difficulties for airlines,” said Viettravel Airlines General Director Vu Duc Bien.

According to Bui Doan Ne, Vice President of the Vietnam Aviation Business Association, in 2020, the revenue of airlines has decreased by about VND 100,000 billion compared to 2019 because of not being able to welcome international passengers. Mr. Ne said that one of the biggest difficulties of enterprises is the problem of capital.

“Aviation and tourism have a very close relationship. I think that supportive policies are absolutely necessary, especially supporting credit packages and stimulating demand to ensure infrastructure and help businesses. When businesses face difficulties, employees can rest assured,” said Vice Chairman of the Vietnam Aviation Business Association Bui Doan Ne.

In order to remove the current difficulties, aviation enterprises have proposed the Ministry of Finance and the Ministry of Transport to consider reducing the import tax on aviation fuel to 0% instead of 7% as at present.

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