Circular No. 13/2024/TT-BGTVT on the mechanism and policies for managing prices of domestic air transportation services and specialized aviation services

CIRCULAR

Regulations on the mechanism and policies for managing prices of domestic air transportation services and specialized aviation services
domestic and the price of specialized aviation services

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Pursuant to the Civil Aviation Law of Vietnam dated June 29, 2006, and the Law Amending and Supplementing Certain Provisions of the Civil Aviation Law of Vietnam dated November 21, 2014;

Pursuant to the Price Law dated June 19, 2023;

BASED ON THE DECREE NO. 56/2022/ND-CP dated August 24, 2022 of THE GOVERNMENT stipulating the functions, tasks, powers, and organizational structure of THE MINISTRY OF TRANSPORT;

PURSUANT TO THE PROPOSAL OF THE DIRECTOR OF THE TRANSPORT DEPARTMENT AND THE DIRECTOR OF THE VIETNAM CIVIL AVIATION ADMINISTRATION;

The Minister of Transport shall issue a Circular to regulate the mechanism and policies for managing prices of domestic air transportation services and specialized aviation services.

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the mechanism and policies for managing prices of domestic air transportation services and specialized aviation services.

2. This Circular applies to organizations and individuals engaged in business, using, and managing prices of domestic air transportation services and specialized aviation services.

Article 2. Principles and Basis for Pricing Services

Prices of domestic air transportation services and specialized aviation services are set according to the principles and bases prescribed in Article 22 of the Law on Prices.

Article 3. Provisions on Payment Currency for Services

1. For domestic air transportation services

Domestic air transportation service prices sold within the territory of Vietnam are specified in Vietnamese Dong (VND). The listing and payment for service usage must be conducted in Vietnamese Dong (VND).

2. For air services

a) Prices for services provided for domestic flights are specified in Vietnamese Dong (VND). The listing and payment for service usage must be conducted in Vietnamese Dong (VND);

b) Prices for services provided for international flights are specified in United States Dollars (USD). The listing and payment for service usage must be conducted in accordance with the laws on foreign exchange.

3. For non-air services

a) At domestic terminals and areas outside the quarantine zones of international terminals: service prices are specified in Vietnamese Dong (VND). The listing and payment for service usage must be conducted in Vietnamese Dong (VND);

b) In quarantine zones of international terminals: service prices are specified in United States Dollars (USD). The listing and payment for service usage must be conducted in accordance with the laws on foreign exchange.

Article 4. Preferential Policies

1. For carriers whose total amount paid for service usage recorded on monthly invoices for takeoff and landing aircraft services and air traffic control services is as follows:

a) For services provided for international flights

b) For services provided for domestic flights

c) The amount of service usage fees is calculated separately for services provided for international flights and domestic flights. Calculation period: one month.

2. For training and pilot instruction activities (not combined with commercial operations) in Vietnam: no charges for air traffic control services and takeoff and landing aircraft services for the first 36 months from the date the training institution conducts its first training and pilot instruction flight (not combined with commercial operations).

3. For Vietnamese airlines participating in the air transportation market for the first time: apply a price equal to 50% of the service price for takeoff and landing aircraft and air traffic control services set by the Ministry of Transport; application period: 36 months from the start of operation.

4. For airlines operating regular international flights to and from Vietnam at airports where no other airline operates regularly for at least 12 months:

a) At Noi Bai International Airport, Tan Son Nhat International Airport, and Da Nang International Airport: apply a price equal to 90% of the service price for takeoff and landing aircraft and air traffic control services set by the Ministry of Transport; application period: 12 months from the start of operation;

b) At other airports: apply a price equal to 50% of the service price for takeoff and landing aircraft and air traffic control services set by the Ministry of Transport; application period: 24 months from the start of operation.

5. In cases where an airline qualifies for multiple preferential rates as prescribed in Clause 3 and Clause 4 of this Article, the highest preferential rate shall be applied.

6. Organizations and individuals conducting service businesses shall proactively apply preferential pricing as prescribed in this Article.

Article 5. Pricing

1. The Civil Aviation Authority of Vietnam shall be responsible for reviewing pricing plans and reporting to the Ministry of Transport to issue pricing documents for the following services:

a) Specific pricing for air services: aircraft takeoff and landing service; air traffic control service for departure and arrival; passenger service at airports; aviation security service; air traffic control service through airspace under Vietnamese management;

b) Framework pricing for air services: aircraft parking area rental service; passenger check-in counter rental service; baggage conveyor belt rental service; aircraft boarding bridge rental service; comprehensive ground commercial technical service package at airports (for airports still applying the package method); automatic baggage sorting service; aviation fueling service; underground fuel supply infrastructure usage service at airports; air service exploitation concession at airports including concessions for passenger terminals; cargo terminals; comprehensive ground commercial technical service; maintenance and repair of aviation equipment; aviation technical service; provision of airline meals; aviation fuel supply;

c) Framework pricing for non-air services: passenger terminal space rental service; cargo terminal space rental service; essential services at airports including food and beverage supply services which are domestic products (instant pho, instant noodles, instant rice vermicelli, instant porridge, plain bread without additional food items; bottled water with a volume not exceeding 500 ml; various types of milk boxes with a volume not exceeding 180 ml);

d) Maximum pricing for basic economy class domestic air passenger transport services sold within the territory of Vietnam.

2. Organizations and individuals operating services as stipulated in Clause 1 of this Article shall be responsible for preparing pricing plans according to the requirements of competent state agencies and shall bear responsibility for the pricing plans they prepare.

3. The establishment, review of pricing plan documentation, issuance of pricing documents, or price adjustments shall be carried out in accordance with laws on pricing.

Article 6. Price Declaration

1. List of services subject to price declaration

a) Essential services at airports including food and beverage supply services which are domestic products (instant pho, instant noodles, instant rice vermicelli, instant porridge, plain bread without additional food items; bottled water with a volume not exceeding 500 ml; various types of milk boxes with a volume not exceeding 180 ml);

b) Prices for basic economy class domestic air passenger transport services sold within the territory of Vietnam.

2. The Civil Aviation Authority of Vietnam shall be responsible for receiving price declaration documents, organizing the updating of declared price information into the National Price Database for services provided by organizations operating services as specified in point b, Clause 1 of this Article, and using declared prices in market price compilation, analysis, and forecasting work as prescribed.

3. Air Traffic Control Units shall be responsible for receiving price declaration documents, organizing the updating of declared price information into the National Price Database for services provided by organizations operating services as specified in point a, Clause 1 of this Article, and using declared prices in market price compilation, analysis, and forecasting work as prescribed.

4. The implementation and receipt of price declarations shall be carried out in accordance with laws on pricing.

Article 7. Price Display

Organizations and individuals providing services shall implement price display for such services in accordance with the provisions of Article 29 of the Law on Prices.

Article 8. Publicizing Information on Prices

Publicizing information on prices shall be carried out in accordance with the provisions of Clauses 1, 2, 4, and 5 of Article 6 of the Law on Prices.

Article 9. Responsibilities of State Management Agencies

1. Civil Aviation Administration of Vietnam

a) Organize and implement regulations on price management as stipulated in this Circular and related legal documents;

b) Conduct inspections to ensure compliance with legal regulations on domestic air transportation service prices and aviation-related service prices within its authority.

2. Airports Control Units

a) Supervise and urge organizations and individuals operating non-aviation services at airports to comply with pricing regulations;

b) Conduct inspections to ensure compliance with legal regulations on non-aviation service prices within its authority.

Article 10. Effectiveness and Implementation Organization

1. This Circular takes effect from July 1, 2024.

2. Abolish the following Circulars:

a) Circular No. 36/2015/TT-BGTVT dated July 24, 2015, issued by the Minister of Transport on the management of domestic air transportation service prices and aviation-related service prices;

b) Circular No. 06/2022/TT-BGTVT dated May 27, 2022, amending and supplementing certain articles of Circular No. 36/2015/TT-BGTVT dated July 24, 2015, issued by the Minister of Transport on the management of domestic air transportation service prices and aviation-related service prices.

3. Repeal Article 7 of Circular No. 53/2019/TT-BGTVT dated December 31, 2019, issued by the Minister of Transport on the levels and ranges of certain aviation-related service prices at Vietnamese airports.

4. In cases where the legal regulatory documents cited in this Circular are amended, supplemented, or replaced, the amended, supplemented, or replaced documents shall apply.

5. The Director of the Ministry's Office, the Director of the Ministry's Inspectorate, the Heads of relevant Departments, the Director of the Civil Aviation Administration of Vietnam, and the Heads of relevant agencies, organizations, and individuals are responsible for implementing this Circular./.