Vietnam Airlines asks to buy domestic terminal at Noi Bai airport

(VNF) - The Vietnam national carrier Vietnam Airlines (VNA) has asked the Transport Ministry to allow it to buy Terminal 1 (T1) at Noi Bai international airport (not including the hall E).

(VNF) - The Vietnam national carrier Vietnam Airlines (VNA) has asked the Transport Ministry to allow it to buy Terminal 1 (T1) at Noi Bai international airport (not including the hall E).

Once completed, it will use the terminal for operational management and services for its passengers and for operating domestic flights, thus helping the Corporation to seek measures to cut aviation costs and improve its business effectiveness.

It is common now for big airlines in the world to have their own terminals at their main airports to exclusively serve their flights and passengers.

According to VNA, selling the terminal would be pursuant to the Transport Ministry’s policy to mobilize private investment to develop the country’s airport infrastructure.

Its proposal to the Ministry of Transport effectively puts Vietnam Airlines on a collision course with low-cost carrier VietJet Air, which also wants to buy T1 at Noi Bai, and the international T2, and has secured a pilot franchise over the hall E while authorities assess its plans to improve efficiency.

In early February, privately-owned carrier VietJet Air submitted a document to Minister of Transport Dinh La Thang, asking to be transferred the right to exploit T1 for 20 years.

The proposal of Vietnam Airlines, however, is quite different, in the manner that it wants to directly purchase the terminal as per the current regulations instead of acquiring the right to operate the facility for a limited term.

Vietnam Airlines said it will use its own capital and pool more from its subsidiaries and also outside organizations and inpiduals for the proposed purchase.

The Noi Bai airport, controlled by the Airports Corporation of Vietnam, manages and operates dozens of commercial aviation hubs across the country. Currently, some 36 local and foreign airlines operate an average 360 flights to and from a day at the airport on a daily basic.

Spanning 115,000 square meters, T1 is capable of serving nine million passengers per year with 19 boarding gates./.

Complied by VNF

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