Aviation association demands interest-free loans for private airlines

It also wanted commercial loans of VND25-30 trillion to be given to them, with the government subsidizing 4-5 percent of the interest.

Vietnam has two private airlines, Vietjet and Bamboo Airways.

State-owned Vietnam Airlines received an interest-free loan of VND4 trillion in June.

Bui Doan Ne, deputy chairman of VABA, said the aviation industry is key to the recovery of the economy.

Vietnamese airlines are in a critical situation due to the pandemic as revenues plunged by 80-90 percent.

VABA also sought a reduction in the environmental tax on jet fuel be to the minimum level of VND1,000 per liter from the current VND3,000 and a halving of service fees at airport terminals next year on domestic routes to boost travel.

Domestic airlines served 13.5 million passengers in the first 11 months, down 53.5 percent year-on-year. They transported 0.3 million tonnes of goods, down 5.9 percent year-on-year.