By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Private Airlines in Vietnam ask for Zero-Interest Loans
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > Private Airlines in Vietnam ask for Zero-Interest Loans

Private Airlines in Vietnam ask for Zero-Interest Loans

Leo Cheung
Last updated: 22 November 2021 20:07
By Leo Cheung 3 Min Read
Share
decorative
Vietravel Airlines will focus on resuming domestic flights after the 1st of January|©Vietravelairlines.com
SHARE

Four private airlines in Vietnam have submitted their request for similar zero-interest loans previously given only to the flag carrier in a meeting between the leading banks of the country and the airlines.  The airlines are Bamboo Airways, Vietjet Air, Pacific Airlines and Vietravel Airlines.

Earlier this year, Vietnam Airlines gained permission from Hanoi to receive a zero-interest loan from The State Bank of Vietnam (SBV) with a worth of US$173million. The refinancing loan will have a zero-interest rate until the 30th December 2021 but is applicable for further extension. The flag carrier signed the credit contract at the beginning of July to pay for overdue debts and operational costs. The CEO of Vietnam Airlines, Dang Ngoc Hoa, claims that they have no intention to use the loans for investment and procurement activities.

Bui Doan Ne, Vice President of the Vietnam Aviation Business Association stated:

“The airlines have had to pay more than VND100 billion (US$4.4 million) every day while 80-90 percent of their fleets were grounded.”

Back in May, Vietnam has experienced a worsening of the pandemic and the demand for air travel dropped from the previous 60-70% down to 80-90%. On behalf of the four airlines, Ne has requested the amount of US$176 million over a three-year term with zero interest. In addition, the airlines ask to apply for the State’s support loan package of US$ 1,100 million on 3-4 year terms. The amount will be distributed as follows: US$440 million to Vietjet, US$220 million to Bamboo Airways, US$250 million to Pacific Airlines, and US$44 million to Vietravel Airlines.

to visualize distribution
The Proposed Loans Distribution to each Airlines.

As of now, SBV is working with the Ministry of Planning and Investment, the Ministry of Transport and the Ministry of Finance to work out a support package for the aforementioned airlines.

Vietravel Airlines is the latest addition to the Vietnamese aviation market. With its maiden flight set for December 2021, the airlines had operated for a few months before getting grounded in August when the Civil Aviation Authority of Vietnam (CAAV) requested airlines to stop selling tickets until further notice. Other airlines in Vietnam, however, were able to continue operations for repatriation and cargo transport.

With the lockdown being lifted this week in Vietnam, do you think the country will reopen its border in 2021? You can find out more about Vietnam Airlines’ financial problems  here.

You Might Also Like

Emirates Signs as the Official Partner of the Women’s Rugby World Cup 2025

Etihad Airways Launches Loyalty Partnership with Vietnam Airlines

IndiGo Commences Operations on Direct Long-Haul Routes to Manchester, Amsterdam

Tourism Seychelles Host Successful Media Workshop In Seoul

Qantas Confirms Cyberattack; Breach Could Impact up to 6 million Customers

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Leo Cheung
By Leo Cheung
Follow:
Aviation Reporter - Born and raised in Hong Kong, Leo has decided to pursue a career in aviation under the influence of the old Kai Tak Airport back in the days. With a degree in aviation, he has joint Travel Radar as an aviation reporter to diversify his views and apply professional knowledge to anyone who is interested in commercial aviation. He regularly contributes articles with 'inside the cockpit' knowledge.
Previous Article Australia to open international borders with the resumption of travel in november Australia Set To Resume International Travel In November
Next Article VY A320 Vueling announces massive expansion in Paris Orly
Leave a comment
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A SAS Airbus A320neo.
SAS Placed Record-Breaking Embraer Order
Aircraft Airlines Aviation
Representatives of Qatar Airways and Kenya Airways signing the Memorandum of Understanding.
Qatar Airways and Kenya Airways Sign New Strategic Partnership
Airline Economics Airlines Aviation
From left to right: Harald Gloy (Chief Operations Officer, Lufthansa Technik), Robert Maślach (Managing Director of Business and CEO, EME Aero), Anneke Troeller (Managing Director of Operations and COO, EME Aero), Michael Schreyögg (Chief Program Officer, MTU Aero Engines)
EME Aero Launches Second Test Cell and Increases MRO Capacity
Airline Economics Aviation Manufacturing
Air Canada aircraft and train
Air Canada: Launches Intermodal Travel With Lufthansa Express Rail
Airline Economics Aviation Route Development Travel
Calgary Airport Overview
Calgary Airports: Development of YYC AeroNex Aviation technology and infrastructure Hub
Airline Economics Airports Aviation
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?