5 November 2020
John Frangos, a partner and the head of Tilleke & Gibbins’ regional aviation practice, was quoted in the October 26-November 1 issue of Vietnam Investment Review in an article on foreign investment in Vietnam’s aviation sector.
Since the issuance in November 2019 of Decree No. 89/2019/ND-CP, which seemingly loosened barriers to entry for new foreign and domestic airlines in Vietnam, the civil aviation market has remained quiet—largely due to the devastating effect of the COVID-19 pandemic on international travel.
As John noted in the article, “[Airlines] are instead focusing on how to keep financially afloat until travel can safely resume. This means the airlines with strong financial reserves will be in a better position to ride out this challenge. But low-cost carriers with razor-thin margins will face difficulty. Until airlines and aviation investors have a better picture of when international travel will safely resume, they will continue to be very cost-conscious and minimize new investment plans, including in Vietnam.”
Vietnam Investment Review (VIR) is a leading English-language economics and business newspaper published weekly by Vietnam’s Ministry of Planning and Investment
The full article on investment in the aviation sector is available at the VIR website.
For further information, please contact:
John Frangos, Tilleke & Gibbins
john.fr@tilleke.com
