The Ministry of Transport said it did not assign the Civil Aviation Authority of Vietnam to study a protection policy dedicated to Vietnam Airlines, which recently reported a loss of VND20 trillion due to the impact of the COVID-19 pandemic.

The information that the ministry gave Vietnam Airlines priority on the allocation of time slots for landing and take-off, and controlled the domestic aviation sector’s growth to help the carrier develop business is incorrect, a representative of the ministry told Vietnam News Agency.

“All policies are fair and equal for all airlines,” said the representative.

According to the ministry, the Airports Corporation of Viet Nam (ACV) has exempted and reduced many air service fees for all airlines that are using services at ACV’s airports, including halving flight guide service fees, from March 1 to August 31.

The ministry last week proposed Prime Minister Nguyen Xuan Phuc to consider exemptions of import tax and environmental protection tax for fuel from January 23 to December 31.

In case of difficulties balancing the budget, the ministry expected the Government to cut these taxes in half and allow businesses to delay tax payments and budget contributions.

It recommended the Government to cut 50 per cent of fees for take-off and landing and flight management services for domestic flights from March 1 to August 31. This time will be adjusted following the development of the pandemic.

The ministry also asked for reduced or suspended payments for corporate income, personal income and foreign contractor taxes from January 23 to December 31, 2020. Businesses are expected to enjoy cuts to value-added tax on domestic transport over three years.