Le Anh A Vietnam Airlines plane is refueled at Tan Son Nhat International Airport. The Ministry of Transport wants jet fuel import tariff to fall to help struggling local airlines - Photo: Anh Quan The ministry said the local airlines needed support to cushion the negative impact of China’s illegal placement of a giant oil rig well inside Vietnam’s exclusive economic zone and continental shelf in the East Sea. In a report signed by Vice Minister of Transport Pham Quy Tieu on solutions to support Vietnamese airlines, the ministry said the number of passengers flying to Vietnam from China had fallen significantly and many Vietnamese tourists had canceled their summer tours to China after the worker protests in mid-May against China’s parking of its Haiyang Shiyou-981 oil rig in Vietnam’s waters. The drops have dealt a blow to Vietnamese airlines. Vietnam Airlines has reported total lost revenue of over VND2.88 trillion as its partners canceled many chartered flights operated by the national flag carrier in summer. Vietnam Airlines has called off 13 air services to 12 destinations in China, with effect from mid-May to late October. Currently, it only operates flights to Beijing, Shanghai and Guangzhou. Vietnam Airlines reported over 42,000 canceled seats from mid-May to mid-June, equivalent to nearly 170 flights and its sales dropped by over US$9 million. In addition, political unrest in Thailand and instability in Ukraine also affected its operations. Similarly, Jetstar Pacific saw its revenue decline as it reduced flights to Macau. VietJetAir has temporarily suspended the Hanoi-Bangkok service and stopped chartered flights from Danang to some provinces in China. To help the local airlines, the Ministry of Transport has cut fees for flight management and landing and take-off services and baggage security screenings by 25% for Vietnamese airlines until the year-end. Besides, ground rent and services prices are kept unchanged for local carriers towards the year-end. The transport ministry has also proposed relaxing visa procedures for visitors from Britain, France, Germany, Australia and India to attract more international passengers to Vietnamese airlines.
Posted on: Sat, 09 Aug 2014 13:48:51 +0000
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