Merger proposed for airport management corporations

The Civil Aviation Administration of Vietnam (CAAV) said that it would submit a plan to merge three airports corporations to the Prime Minister for consideration this month. 
 

The Civil Aviation Administration of Vietnam said that it would submit a plan to merge three airports corporations to the Prime Minister for consideration this month

According to Pham Quy Tieu, Deputy Minister of Transport and Head of the CAAV, the Northern Airports, Middle Airports and Southern Airports Corporations will be merged into one corporation, Vietnam Airports, which will be responsible for operating all domestic and international airports in the country.

Currently, many airports in Vietnam suffer from losses. According to the Northern Airports Corporation, five airports it manages incur losses every year of their operation, including Dong Hoi in Quang Binh, Vinh in Nghe An, Cat Bi in Haiphong and Na San in Son La and Dien Bien.

Average cost for each flight is estimated at VND12.8 million (USD609.5), while airports are only allowed to collect fees of each flight at VND3 million (USD142.8) on average, therefore, the corporation has to spend VND9.8 million (USD466.7) on average to offset losses for each flight flying from or to loss-making airports.

National versus local needs

The province of Khanh Hoa has recently sent a proposal to transfer management of Cam Ranh International Airport to the Southern Airports Corporation. The airport is now under the management of the Middle Airports Corporation.

According to local authorities, the Middle Airports Corporation has not developed its infrastructure, despite receiving support from the province. As a result, the airport is unable to meet the air traffic demands of the province. 

They said in terms of geographical position, Cam Ranh lies near the southern region, so it would be beneficial for the southern firm to take over the airport.

Cam Ranh International Airport now does not have clean water or a runway that can facilitate international flights. It also lacks safety services, such as fire trucks. 

Deputy Transport Minister Pham Quy Tieu said, Khanh Hoa Province’s submission would be considered at a later date because the CAAV prioritises the plan to merge all three corporations.