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Higher environmental tax among challenges facing Vietnam airlines

Higher environmental tax among challenges facing Vietnam airlines

Friday, March 20, 2015, 18:32 GMT+7

Vietnamese air carriers pinpointed many difficulties that are hindering their operations, including a higher environmental tax on fuel, as they met with the country’s aviation watchdog on Thursday.

The Civil Aviation Authority of Vietnam (CAAV) held the Hanoi meeting to listen to the carriers in the hope of finding possible resolutions to their problems.

Duong Tri Thanh, deputy general director of national flag carrier Vietnam Airlines, said the new environmental tax, which will triple starting in May, will result in a VND740 billion (US$34.49 million) cost overrun for the company from now to the end of this year.

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