Airplanes parks at Tan Son Nhat Airport in HCM City. A conference has been held in Ha Noi to discuss policies to mitigate the difficulties facing aviation firms. -- Photo tinngan.vn

HA NOI (Biz Hub) — The Civil Aviation Authority of Viet Nam (CAAV) under the Transport Ministry held a conference in Ha Noi on Thursday to discuss the current performance of aviation firms.

The conference also deliberated on coming up with relevant measures and policies to mitigate the difficulties facing these firms.

Addressing the audience at the event, CAAV Deputy Director Vo Huy Cuong said the Transport Ministry would focus on strengthening reforms for the satisfaction of businesses and people in 2015.

The ministry was also eager to hear from enterprises about how policies should be designed to create favourable conditions for aviation firms and boost sustainable growth.

Participants agreed that one of the factors influencing aviation enterprises' costs was the rise in environmental taxes imposed on fuel. Vietnam Airlines' costs are estimated to have increased by VND750 billion (US$35.25 million), while that of Vietjet Air had jumped VND400 billion ($18.8 million) and Jetstar Pacific by VND150 billion ($7.05 million).

A Vietnam Airlines representative proposed that the costs covered through marginal increases in ticket fares would also ease the impact on firms. Meanwhile, a Viet Nam Air Services Company representative suggested environmental tax exemptions for Jet A1 and A0 gas.

Another issue raised by airlines operating flights to and from Phu Quoc was the need to clarify visa exemptions for tourists in Phu Quoc and procedures for visiting Ha Noi and HCM City.

Vietjet Air Deputy General Director Nguyen Duc Tam said his company hoped to engage in recruitment for ground services.

Cam Ranh Airport to get new terminal

Representatives of the Khanh Hoa provincial People's Committee and the Vietnam Airlines Corporation on Thursday held a working session to discuss the construction of a new terminal at the Cam Ranh International Airport.

The airdrome in Nha Trang city is one of the country's four airports that are seeing a rapid growth in terms of passenger traffic.

In 2014, the airport welcomed over 2 million visitors, exceeding its designed capacity of 1.5 million passengers, and the flow is expected to grow to 4 million passengers by 2020.

The airport was overcrowded and currently unable to meet demand, Director of Cam Ranh International Airport Phan Le Hoan, said, stressing on the need to build Terminal 2.

According to a preliminary draft project, the new terminal would require a total investment of over VND1 trillion ($46.5 million), covering 15,000 sq. metres of land and will be used to serve international flights. The existing terminal would serve domestic flight traffic.

The Chairman of the provincial People's Committee, Nguyen Chien Thang, said the project was in line with the province's development strategy and would attempt to transform Khanh Hoa into a socio-economic hub in the southern central region. —VNS