VietNamNet Bridge - The Ministry of Finance (MOF) has suggested not offering the concession to exploit airports to air carriers, warning that if airports are put under control by airlines, this would create unhealthy competition in the market.

MOF has clearly shown its viewpoint in a document sent to the government recently, discussing a plan to call for public capital for air infrastructure development projects.

The ministry said it agrees that is necessary to mobilize capital from many different sources to develop air infrastructure,instead of totally relying on the state budget. 

However, it thinks it will still be necessary to build up a roadmap for implementation, while Vietnam should not be hasty when it still has not well prepared.

Regarding the plan to offer Phu Quoc Airport concession, MOF emphasized that the use of the money to be collected from the concession will not be determined by the State. 

A report of the Ministry of Transport showed that the Phu Quoc Airport was built with the ACV’s capital. Therefore, only ACV shareholders are in the right position to make a decision in this case.

MOF also reminded MOT to clarify ACV’s asset  value to prepare for the ACV equitization process. ACV now is reported to comprise 22 airports, including Phu Quoc.

Prior to that, Minister of Transport Dinh La Thang said MOT planned to use the money from the Phu Quoc Airport sale to build Long Thanh Airport in Dong Nai province.

Thang, insisting on the necessity of building Long Thanh Airport to ease overloading at Tan Son Nhat Airport, said there was no need to worry about the lack of capital for Long Thanh.

In March, Thang submitted to the Prime Minister a plan to offer Phu Quoc Airport concession under the O&M (operations and maintenance) mode to domestic investors.

Phu Quoc is now the target of two big groups – T&T Group and TPP Group. They are not air carriers.

Meanwhile, air carriers Vietnam Airlines and Vietjet Air, are competing for the T1 Terminal of Noi Bai International Airport.

Ministries have not released official statements about MOF’s viewpoint that air carriers should not be allowed to operate airports. 

An analyst noted that if air carriers are excluded, there would be few investors to be interested in airports. 

“Air carriers are the ones that most want the airports, because their business performance depends on airport services,” he explained.

“If air carriers are kept away, the market would not be attractive because the strongest rivals would be weeded out,” he said.

Kim Chi