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Vietnam airlines face multimillion-dollar losses

Vietnam, aerolíneas, pérdidas

Vietnam airlines face multimillion-dollar losses

Hanoi, Jun 28 (Prensa Latina) The head of the Vietnam Aviation Administration, Dinh Viet Thang, said that the sustained increase in fuel prices has caused losses of billions of dollars for national airlines.
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Although local air traffic has fully recovered, and even grew in comparison to pre-Covid-19 times, the domestic companies continue to face numerous difficulties as a result of the slow recovery of the world market.

As Viet Thang explained at a meeting of the Ministry of Transportation to assess performance in the first six months of the year, fuel costs currently account for up to 50 percent of the airlines’ overall spending.

Consequently, the Aviation Administration proposed that the Government continue adopting policies to support the aeronautical industry, especially in the reduction of taxes.

The deputy general manager of Vietnam Airlines, Trinh Hong Quang, asked for his part the cabinet and the Ministry of Transport not to charge gasoline and oil surcharges on ticket prices in order to minimize difficulties in favor of the sector. In another of the interventions, the deputy head of the Transportation Department of the Aviation Administration, Vu Hong Quang, said that in the first six months of 2022 more than 2,370,000 international passengers traveled to Vietnam.

However, he clarified that key markets such as South Korea, Japan, China and Chinese Taipei still apply strict policies to prevent and control the Covid-19 pandemic, which slows down the flow of passengers.

Therefore, according to Hong Quang, in the near future it will be necessary to work with the competent authorities of each country in favor of the complete resumption of activities in the sector.

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