TIẾNG VIỆTOn the morning of March 9, Director General of the Civil Aviation Authority of Vietnam Uong Viet Dung chaired a meeting with agencies and units in the aviation industry on plans to respond to the impacts of fuel price increases due to the conflict in the Middle East. Attending the meeting were leaders of domestic airlines, jet fuel suppliers, Airports Corporation of Vietnam (ACV), Vietnam Flight Management Corporation and related enterprises...
Director General of the Civil Aviation Authority of Vietnam Uong Viet Dung chaired a meeting with agencies and units in the aviation industry on plans to respond to the impacts of fuel price increases due to the conflict in the Middle East. Photo: Civil Aviation Authority
Reporting at the meeting, Mr. Bui Minh Dang, Head of Air Transport Department, Civil Aviation Authority of Vietnam, said that in the face of the complicated development of the Middle East war situation, the price of JetA1 fuel (not the price of crude oil) has increased 3 times compared to the time before the conflict. This makes it difficult for airlines when the cost will increase by 60-70%.
In addition, petroleum suppliers also face difficulties in ensuring the maintenance of fuel supply for air transport activities in Vietnam.
In addition, the increase in diesel prices also has a significant impact on the operation of airports.
"In response to this problem, the Civil Aviation Authority of Vietnam and units in the industry discussed and proposed solutions to the Government, relevant ministries and sectors through support for fuel import tax, environmental protection tax, VAT, aviation prices and fees, credit policy support, etc. In order to ensure air transport activities with the goal of ensuring absolute safety, not to be disrupted, interrupted, not to increase ticket prices beyond the spending capacity of the people, especially during the holidays of 30-4, 1-5 and the peak summer of 2026, efforts are made to maintain high growth momentum in the first 2 months of the aviation - tourism sector"- Mr. Dang emphasized.
Mr. Nguyen Quang Trung, Deputy General Director of Vietnam Airlines, said that in the immediate future, the airline will use the fuel reserve from March, and at the same time deploy fuel-saving solutions to ensure part of the exploitation demand in April. According to Mr. Trung, if the price of fuel increases to about 200 USD/barrel, the operating costs of airlines can double. "At that time, the more you fly, the more you lose," Mr. Trung said.
In order to remove the immediate difficulties, the representative of Vietnam Airlines proposed to the competent authority to consider exempting the environmental protection tax on jet fuel. In addition, in addition to allocating slots in Vietnam, the airline also asked the Civil Aviation Authority to have a voice with international aviation authorities to apply flexible mechanisms similar to the COVID-19 epidemic period.
In the context of some Middle Eastern airlines temporarily suspending operations, Vietnam Airlines has adjusted a number of routes to Europe, adding about 30 flights to relieve the backlog of passengers in Vietnam and vice versa.
According to Mr. Trung, this is a big risk but also opens up opportunities for Vietnamese airlines. As Middle Eastern airlines suspend operations, the restoration of operations may take a long time even if the situation stabilizes again. This is an opportunity to attract more passengers to Vietnam and gradually realize the strategy of making Vietnam a transit hub of the region. However, to take advantage of this opportunity, airlines need to maintain stable operations and ensure financial capacity.
Strengthening supervision and ensuring the interests of passengers
Concluding the meeting, Director General of the Civil Aviation Authority of Vietnam Uong Viet Dung said that the Civil Aviation Authority of Vietnam will propose the Ministry of Construction to report to the Government to consider appropriate support mechanisms. The Director requested agencies and units to urgently send back specific reports and proposals for the Civil Aviation Authority of Vietnam to summarize the situation, assess the current situation, and develop recommendations and solutions to submit to competent authorities for consideration. In the immediate future, policies and support mechanisms need to be considered to last until the end of May.
Director General of the Civil Aviation Authority of Vietnam Uong Viet Dung concluded the meeting. Photo: Civil Aviation Authority
At the same time, Mr. Dung suggested that airlines need to optimize costs, have solutions to maintain flight networks and flight plans; take advantage of and closely coordinate with the tourism industry to study new openings or increase the frequency of flights to potential markets such as the Americas, Africa, Australia, Eastern Europe, India, Japan and Korea. and ensure service quality corresponding to cost reduction, ensure publicity, information transparency and proactivity in communication to passengers and promptly answer and resolve passengers' petitions. "The Civil Aviation Authority of Vietnam will strengthen supervision to ensure the interests of passengers," Mr. Dung emphasized.