Bamboo Airways seeks refinancing loan with interest rate of 0%

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 VND5 trillion (US$216 million) with a 0% interest rate, which is similar to the VND4 trillion loan package applied to Vietnam Airlines.

Bamboo Airways also proposed a rise in the environmental tax reduction on aviation fuel to 50% from 30%, 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 VND120 billion, which account for 1.4% of the total cost. Of which, VND70 billion was from the flight fuel tax reduction, VND27 billion was from the 50% discount policy for takeoff/landing services and VND23 billion from the flight control discount.

Earlier, Bamboo Airways revealed that in 2020, the airline reported a profit of more than VND400 billion, up 34% over 2019, despite the impact of the COVID-19 pandemic.

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