Vietnam to consider zero-interest loans for all airlines

The Government Office has instructed the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Transport and the State Bank of Vietnam to study a proposal by the Vietnam Aviation Business Association (VABA), in which the airline industry is to gain access to VND25t (over US$1.1b) of zero-interest loans. The loans, according to VABA, are intended to help the airlines to cover recurring expenses, acquire supply and new machinery and to perform maintenance duties during the pandemic. The loan amount will be subject to the size of each airline, its share of the market and the amount it contributed to the State budget. The association cited a VNĐ4t, zero-interest, three-year-term loan granted to Vietnam Airlines as a basis for their proposal, saying the Government must ensure a level playing field. In addition, it has also demanded a 70% cut in environmental tax for all the airlines. <br/>