Sending an official dispatch to Deputy Prime Minister Tran Hong Ha, the Ministry of Construction said that the Boeing B727-220 aircraft abandoned at Noi Bai International Airport has been produced since 1975, and is now 50 years old. Due to stopping and parking for a long time (since May 1, 2007) without exploitation, maintenance, or repair, this aircraft has now become old, rusty, and showing signs of rot.
At the same time, having to arrange a parking location in the airport for storage has caused difficulties and obstacles for other aircraft in the operation of Noi Bai International Airport.
Since 2015, the Civil Aviation Authority of Vietnam (the specialized aviation management agency) has determined that the technical condition of the aircraft has seriously degraded, cannot be restored and does not meet the standards on flight eligibility according to Vietnamese and international regulations.
According to the Ministry of Construction, to date, the results of the auction of the B727-200 aircraft of the units under the direction of the Government leaders on December 6, 2016 are not feasible.
The Ministry of Construction said that it is necessary to change the handling plan for the B727-200 aircraft more effectively.
The Ministry of Construction proposed that the Deputy Prime Minister consider and approve the change of the plan to handle the B727-200 aircraft from "auction of assets" to "agreement for the Vietnam Aviation Academy to use aircraft as a model, a practice tool, and internship in a specialized aviation training facility".
Explaining the change in the option of not auctioning, the Ministry of Construction said in detail the results of the property auction as follows:
On December 15, 2014, the Vietnam Airports Authority issued Notice No. 5077/TB-CHK, determining that the above-mentioned abandoned aircraft will be handled according to Vietnamese law.
On December 6, 2016, the Government Office issued Document No. 10527/VPCP-KTTH on the establishment of state ownership and handling plans for abandoned aircraft at Noi Bai International Airport.
Implementing the direction of the Government, the Minister of Finance issued Decision No. 34/QD-BTC dated January 10, 2017 establishing State ownership of assets; the Ministry of Transport (now the Ministry of Construction) chaired and directed the Civil Aviation Authority of Vietnam and relevant agencies to auction assets in accordance with the provisions of the law on property auctions.
However, the process of auctioning assets encountered many difficulties and problems because special assets have no history of trading in Vietnam and in the world; the valuation level (VNG Vietnam's valuation certificate) was determined to be too low, not enough to pay for auction costs and other related costs.
Therefore, on June 22, 2021, the Civil Aviation Authority of Vietnam issued Document No. 2678/CHK-PCHTQT proposing a plan: Not to auction B727-200 aircraft to avoid affecting budget expenditure sources due to having to provide financial support for the auction of assets established for public ownership.
The document also assigned Vietnam Airports Corporation to be a simulated model for training and drills on anti-terrorism, emergency rescue and aviation rescue.
Regarding this issue, the Ministry of Construction at that time reported and requested the Ministry of Finance to provide guidance (Document No. 37/BGTVT-PC dated January 14, 2019) and received the opinion of the Ministry of Finance "requesting the Ministry of Transport to properly implement the direction of the Deputy Prime Minister in Official Dispatch No. 10527/VPCP-KTTH dated December 6, 2016 of the Government Office; if necessary, request the Ministry of Transport (now the Ministry of Construction) to specifically explain the reasons for changing the handling plan of B727-200 aircraft to be more effective and in accordance with the characteristics of the property, report to the Prime Minister for consideration and decision on handling according to regulations.
Since then, the Civil Aviation Authority of Vietnam has continued to research and implement many measures to find solutions to handle B727-200 aircraft more effectively, more suitable to the characteristics of the property, including transfer and transfer options to security and defense units.
Another option is to transfer to Vietnam Airports Corporation.
The next option is to assign the Vietnam Aviation Academy to use aircraft as models and practice and internship tools in specialized aviation training facilities.
