Circular No. 17/2019/TT-BGTVT promulgates the framework for pricing passenger transportation services on domestic air routes.

CIRCULAR

ISSUING THE FRAMEWORK FOR PRICES OF PASSENGER CARRIAGE SERVICES ON DOMESTIC AIR ROUTES

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

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices and Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain articles of Decree No. 177/2013/NĐ-CP;

Pursuant to Decree No. 12/2017/NĐ-CP dated February 10, 2017, issued by the Government on 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 issues this Circular stipulating the framework for prices of passenger carriage services on domestic air routes

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the framework for prices of passenger carriage services on domestic air routes,

2. This Circular applies to organizations and individuals providing, using, and managing the prices of passenger carriage services on domestic air routes.

Article 2. Interpretation of Terms

1. The basic economy class service price is the price that passengers must pay for their journey in the economy cabin of the aircraft, which meets the basic requirements of the majority of passengers from ground services to in-flight services.

2. The additional service price is the price that passengers must pay for additional services that they have the right to choose whether to use or not, provided by the airline to meet the needs of passengers from ground services to in-flight services.

3. The flight distance is the distance determined according to the common flight range including the flight range at cruising altitude, flight range when entering the airway, flight range along the airway, descent range, and flight range during approach and landing.

4. Economic and social development air routes are those with a distance under 500km, flying to remote areas, border islands, and only operated by one airline.

Article 3. General Provisions on the Framework for Passenger Carriage Service Prices

1. The principles for determining the framework for passenger carriage service prices are stipulated in Article 3 of Circular No. 36/2015/TT-BGTVT dated July 24, 2015 of the Minister of Transport on the management of domestic air passenger transport service prices and specialized aviation service prices.

2. The framework for passenger carriage service prices on domestic air routes has a price range from 0 (zero) dong to the maximum level of each flight range group. Airlines determine the price range for passenger carriage services within the framework of passenger carriage service prices to ensure alignment with the actual production and business costs of each flight.

Article 4. Framework for Passenger Carriage Service Prices

1. Framework for Basic Economy Class Passenger Carriage Service Prices

2. The maximum service price specified in Clause 1 of this Article includes all costs that passengers must pay for one air ticket, except for the following revenues:

a) Value-added tax;

b) Revenues collected on behalf of enterprises providing passenger terminal services and security assurance services, including passenger service fees, passenger security assurance fees, and baggage fees;

c) The service price for additional items.

3. The service price for additional services is decided by airlines based on their ability to provide services and market demand.

Article 5. Responsibilities of the Vietnam Civil Aviation Authority

1. Implement the notification of the list of domestic air routes according to flight distance groups.

2. Inspect, supervise, and report to the Ministry of Transport on the implementation results of the service charge framework for transportation as prescribed by laws on specialized aviation pricing.

Article 6. Responsibilities of Air Carriers

1. Air carriers shall specify ticket prices on individual routes or route groups through diverse pricing methods for each route and regular price reductions for residents and soldiers stationed in remote, border, and island areas.

2. Submit specific price levels to the Vietnam Civil Aviation Authority and publicly announce prices in accordance with 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 specialized aviation service prices, and Circular No. 07/2017/TT-BGTVT dated March 14, 2017, amending and supplementing certain provisions 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 specialized aviation service prices.

3. In cases where air carriers open new routes not yet announced in the flight distance groups notified by the Vietnam Civil Aviation Authority, the air carrier shall be responsible for reporting to the Vietnam Civil Aviation Authority for consideration and supplementary inclusion of the new route into common flight distance groups before submitting price declarations to the Vietnam Civil Aviation Authority.

Article 7. Effectiveness and Implementation Organization

1. This Circular takes effect from July 1, 2019.

2. Where legal normative documents serving as bases and referenced in this Circular are amended, supplemented, or replaced, they shall be implemented in accordance with the amended, supplemented, or replaced legal normative documents.

3. The Director of the Office, the Inspector General, the Heads of Departments, the Director of the Vietnam Civil Aviation Authority, the Heads of agencies, organizations, and related individuals are responsible for implementing this Circular.