Vietnamese airlines seek loans to help them through pandemic

The suspension of international flights amid the coronavirus pandemic will cost Vietnamese airlines D15t ($649m) in 2021, according to the country’s Vietnam Aviation Business Association. The association made the claim in a report filed with the country’s Ministry of Planning and Investment, according to a report in the VnExpress news outlet. This follows D18t in losses in 2020. According to the report, low-cost carrier VietJet Air has requested a “credit package” of D4-5t for the 2021-23 timeframe, while Bamboo Airways has asked for long-term loan of D5t. This follows a D4tn bailout of Vietnam Airlines. Bamboo said that any such discussions are confidential. “Ongoing submissions and discussions between a company and government authorities of such nature in Vietnam are considered confidential information in accordance with relevant regulations,” it says. “Nevertheless, the fact that some private airlines in Vietnam, including Bamboo Airways, have successfully managed to thrive in [what is dubbed the] “worst year in aviation history”, is a vivid demonstration of their resilience and determination. These valuable features should be highly considered when developing the government’s support policies, in which financial resources come from a limited government budget and should be utilized effectively.”<br/>