Local airports report massive losses
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Most local airports in Vietnam have reported billions of dong in loss in the first eight months of this year.
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The Northern Airport Corporation (NAC) said it had had to spend VND64.4 billion (US$3.2 million) to offset for the losses of airports in the northern provinces of Quang Binh, Nghe An, Hai Phong and Dien Bien.
Meanwhile, the Southern Airport Corporation (SAC) also said 5 out of the 8 airports under its management had been operating with losses due to low flight frequency.
But a SAC official said many provinces still want to have airports despite losses.
The Mekong Delta province of An Giang, for instance, has recently sought approval to build an airport in Can Dang Commune in Chau Thanh District, which has raised concerns because this location is only 60km away from the two existing airports in Can Tho and Kien Giang provinces.
Moreover, demand for flights between Can Tho and Ho Chi Minh City have fallen sharply, even forcing Jetstar Pacific to halt services on this route after losing $2 million.
Vietnam Airlines has also had to its services on this route.