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HANOI, May 13 (Reuters) – Vietnam is considering raising the foreign ownership cap for \u200cdomestic airlines to 49% from 34%, \u200cstate media reported, citing a draft document from the \u200bConstruction Ministry.<\/p>\n
The move aims to help carriers attract investment, strengthen finances and access modern technology as well as management and operational expertise \u200cfrom their foreign \u2060partners, Dau Tu newspaper reported late on Tuesday, citing the draft.<\/p>\n
\u2022 \u2060Raising the cap would also align with Vietnam’s commitments under the free trade agreements \u200bit has \u200bsigned, the draft \u200bsaid.<\/p>\n
\u2022 Vietnam currently has \u200cseven airlines, led by flag carrier Vietnam Airlines and budget airline Vietjet.<\/p>\n
\u2022 Local carriers have been forced to scale back operations because of surging jet fuel costs caused \u200cby the Iran war.<\/p>\n
\u2022 The \u200bgovernment said on Wednesday \u200bthat local \u200bairlines will “further adjust their operations to \u200coptimise costs,” without elaborating.<\/p>\n
\u2022 \u200bIt added \u200bthat jet fuel prices have risen by 88% since the conflict began in late \u200bFebruary, with \u200csupply still uncertain and costs likely \u200bto stay elevated.<\/p>\n
(Reporting by Khanh Vu; \u200bEditing by David Stanway)<\/p>\n<\/p><\/div>\n