Vietnam Airlines to invest $430 million at Long Thanh Airport project

Aviation Updates Philippines – Vietnam's national airline Vietnam Airlines is planning to invest VND 9.9 trillion (~USD $430 million) at the Long Thanh International Airport project. 

 

Image: Artist depiction of Long Thanh Airport  (Source: Airports Corporation of Vietnam)

According to a report on the VN Express, the airline plans to become a ground service provider and offer catering services at the mega-airport project that is currently under construction. Among the services it plans to offer based on a proposal to authorities include aircraft maintenance services, supply of jet fuel and meals, lounge services, and the set up duty-free shops.

Vietnam Airlines currently operates the proposed services at major airports within the country. In its proposal the airline through its subsidiaries can set up its facilities at the airport or form joint ventures with the Airports Corporation of Vietnam (ACV) – the organization in charge of the construction and operations.

The airline has proposed to invest 30% of its own resources and borrow the rest to work on its projects at the airport.

The new airport will be located 40 kilometers east of Ho Chi Minh City, and is expected to take up to 85% of the international flights operated to/from the current main airport for the Ho Chi Minh city area - Tan Son Nhat.

The first phase is expected to be completed in 2025 which will have a capacity of 25 million passengers. After two future phases that are scheduled to be built between the years 2030 and 2050, the airport will have a designed capacity of 100 million passengers. The first phase is estimated to cost VND114 trillion (USD $4.87 billion), and will be raised from public funds, a bond issue and private sources.