Ministry endorses merger of airports corporations

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SaigonTimes English - 34 month(s) ago 5 readings

HCMC - Transport Minister Dinh La Thang has signed a decision to establish Airport Corporation of Vietnam by merging the existing airports corporations in northern, central and southern regions in order to better operate and invest in civil airports across the country.

Ministry endorses merger of airports corporations

By Binh Nguyen - The Saigon Times Daily

HCMC - Transport Minister Dinh La Thang has signed a decision to establish Airport Corporation of Vietnam by merging the existing airports corporations in northern, central and southern regions in order to better operate and invest in civil airports across the country.

The Civil Aviation Administration of Vietnam said Decision No. 238/QD-BGTVT came out less than two months after the Prime Minister approved a plan to merge Northern Airports Corp. (NAC), Middle Airports Corp. (MAC) and Southern Airports Corp. (SAC).

The Airport Corporation of Vietnam will operate in the form of a state-owned holding company, with headquarters based at Tan Son Nhat International Airport in HCMC. The combined capital of this corporation will exceed VND14.6 trillion (some US$700 million) at the merger time, the civil aviation administration said on its website on Monday.

The new airport corporation will manage some 20 international and domestic civil airports at the helm of NAC, MAC and SAC; invest and manage investment capital; supply services regarding aviation security, safety, aircraft maintenance and equipment and fuel. It is also allowed to act as the agent for airlines, transport and travel firms, and manufacturers and providers of aircraft and equipment in the aviation sector.

In late 2011, the civil aviation administration and the transport ministry pressed ahead with plans to merge NAC, MAC and SAC after the two first corporations reported big losses at the local airports they managed due to service charges being lower and fewer flights than targeted. As a result, these corporations proposed service fee hikes, which experts said would push up airfares and leave more burdens on passengers.

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