Ca Mau spends 7 billion VND to support airlines, but gains outweigh losses

Specifically, support for the cost of maintaining flight operations is equal to the ticket price of 10% of the total number of passenger seats of each type of aircraft, according to each actual flight. The ticket price for calculating the support level is 3,000,000 VND/seat for flights with a distance of over 1,000km; the ticket price for calculating the support level is 2,000,000 VND/seat for flights with a distance of 500km to 1,000km; the ticket price for calculating the support level is 1,500,000 VND/seat for flights with a distance of less than 500km. Funding for implementation comes from the provincial budget and other legal sources.

At first glance, it sounds like Ca Mau is throwing money out the window. But if you calculate carefully, you will see that this spending is very reasonable and brings many benefits to the locality.

Mr. Nguyen Tien Hai - Secretary of the Ca Mau Provincial Party Committee - affirmed: "This is not a luxury as some critics have argued. Clearing traffic arteries, including air routes, is the key issue to revive the rapid and sustainable development of Ca Mau province. Accordingly, each year, the province spends no more than 7 billion VND on support, but the benefits are huge."

Very convincing, because there are few passengers flying to Ca Mau, airlines do not operate, so where will the planes come from for people to fly. The only way left is to support to share difficulties with airlines, both sides should shoulder part of the loss to stimulate aviation demand.

With the flight, tourists from far away provinces can come to Ca Mau, instead of traveling thousands of miles by road, which takes a lot of time. The advantage is here.

Another benefit is that Ca Mau people have more means of air transportation to choose from, saving time for business travel, which is also a benefit.

Every year, provincial officials attend meetings, conferences, and seminars in Ho Chi Minh City, Hanoi , and other places. Having direct flights saves a lot of money, and in a year, it can be as much as supporting airlines.

Ca Mau is not the first locality to have this problem, Can Tho and Quang Binh have gone before. Therefore, it is necessary to study the "model" to see if it is really successful. Because, if the number of passengers does not cover the cost, even with support, airlines cannot exploit it.

We need to think further, in addition to supporting airlines to operate flights, Ca Mau needs to focus on "rolling out the red carpet" to invite investors, a real red carpet, and not "rolling out the carpet above, scattering nails below".

Furthermore, attracting tourists is not only about the air connection, but also about attractive products and services. Otherwise, no one would fly to Ca Mau.

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