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Bamboo Airways seeks refinancing loan with interest rate of 0%

Update: March, 23/2021 - 15:56
Passengers disembark a Bamboo Airways aircraft. VNS/VNA Photo

HÀ NỘI — In a document sent to the Ministry of Transport, the private airline Bamboo Airways proposed a preferential loan and some tax cuts to overcome the COVID-19 crisis.

The air carrier asked the ministry to consider and propose to the Government and the State Bank of Vietnam (SBV), the country’s central bank, to issue a resolution to allow commercial banks to provide a long-term refinancing loan of VNĐ5 trillion (US$216 million) with a 0 per cent interest rate, which is similar to the VNĐ4 trillion loan package applied to Vietnam Airlines.

Bamboo Airways also proposed a rise in the environmental tax reduction on aviation fuel to 50 per cent from 30 per cent, as well as cut (possibly 100%) in some fees and other service prices like airport services and flight operation services until the end of this year.

The airline also asked for the extension of some supportive policies for employees, and to add policies for employers.

According to Bamboo Airways, the tax and fee reduction policies for airlines in 2020 have helped the air carrier cut costs by about VNĐ120 billion, which account for 1.4 per cent of the total cost. Of which, VNĐ70 billion was from the flight fuel tax reduction, VNĐ27 billion was from the 50 per cent discount policy for takeoff/landing services and VNĐ23 billion from the flight control discount.

Earlier, Bamboo Airways revealed that in 2020, the airline reported a profit of more than VNĐ400 billion, up 34 per cent over 2019, despite the impact of the COVD-19 pandemic. 

This is the first time a private airline has asked for a large refinancing loan with an interest rate of 0 per cent. SBV provided refinancing loans for Vietnam Airlines to maintain its operations and overcome the pandemic. — VNS

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