Decision No. 2604/QD-BTC Amending and Supplementing Certain Provisions of the Air Services Pricing Table and Price Range Issued Together with Decision No. 426/QD-BTC dated February 25, 2010 of the Ministry of Finance on Pricing and Price Range for Certain Air Services at Vietnamese Airports

Pursuant to …;

Regarding amendments and supplements to some provisions of the Pricing Table and Price Range for Certain Air Services issued together with Decision No. 426/QD-BTC dated February 25, 2010 of the Ministry of Finance on pricing levels and price ranges for certain air services at Vietnamese airports

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THE MINISTER OF FINANCE

Pursuant to the Civil Aviation Law No. 66/2006/QH11 dated June 29, 2006;

Pursuant to Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Law; Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing certain provisions of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Law;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Circular Joint No. 103/2008/TTLT-BTC-BGTVT dated November 12, 2008 of the Ministry of Finance and the Ministry of Transport guiding the management of domestic air cargo fare rates and air service prices at Vietnamese airports;

Pursuant to the results of the review and the proposal of the Ministry of Transport in Document No. 5891/BGTVT-VT dated September 21, 2011;

At the proposal of the Director of the Price Management Department,

DECISION:

Article 1. Amending and supplementing some provisions of the Pricing Table and Price Range for Certain Air Services issued together with Decision No. 426/QD-BTC dated February 25, 2010 of the Ministry of Finance as follows:

1. Amending Clause 1, Article 2 regarding the classification of airports as follows:

"1. Vietnamese airports are classified into groups as follows:

a) Group A: Noi Bai, Da Nang, Tan Son Nhat, Phu Bai, Cam Ranh, Cat Bi, Can Tho, Lien Khuong airports.

b) Group B: Other airports not belonging to Group A."

2. Amending and supplementing Article 5 regarding the objects entitled to price reductions as follows:

"1. Preferential pricing policies shall be applied in the following cases:

a) Airlines opening international routes to and from Vietnam for the first time.

b) Airlines operating international routes to and from Vietnam during off-peak hours: Depending on the actual operational situation of each airport, the Civil Aviation Administration of Vietnam will announce peak and off-peak hours and submit preferential pricing policies to the Ministry of Transport for approval.

c) Vietnamese airlines participating in the air transport market for the first time.

2. The duration and level of price reduction stipulated in Clause 1 of this Article are as follows:

a) Duration: From the date the airline starts operations until the average seat occupancy rate over three consecutive months reaches 80%, with a maximum period of 36 months.

b) Level: up to 50% of the prescribed price. In cases where an airline qualifies for multiple discount levels, the highest discount will apply.

3. Pricing reduction policy for carriers whose total monthly payment recorded on invoices for air services at Vietnamese airports (excluding charges for additional air traffic control services and passenger services at airports) is subject to state-prescribed pricing and price ranges.

3.1. For services provided for international flights:

3.2. For services provided for domestic flights:

3.3. Determination of the total monthly invoice payment amount as the basis for calculating specific discounts as follows:

a) For services provided by the Airports Corporation: The total monthly invoice payment amount is the total amount that the carrier must pay to the Airports Corporation based on the state-prescribed prices in Chapter II, Part I (excluding additional air traffic control services and passenger services at airports) and the specific prices within the price range set out in Chapter II, Part II (excluding fuel supply and refueling services for domestic flights) provided by enterprises under the Airports Corporation or the Airports Corporation to the carrier (including both international and domestic flights) for one month.

b) For air traffic control services: The total monthly invoice payment amount is the total amount that the carrier must pay to the Air Traffic Control Management Corporation (including both international and domestic flights) for one month.

4. Reordering Point 3 and Point 4 of Clause 2 of this Article to become Point 4 and Point 5."

3. Amending Point b, Clause 2, Article 8 regarding the landing and take-off fees for aircraft as follows:

"b) Landing and take-off fee for domestic flights at Group A airports:

4. Amending Point a, Clause 2, Article 10 regarding passenger service fees at airports as follows:

"a) Passenger service fee for international flights:

Unit of Measurement: USD/passenger

5. Supplementing Clause 6, Article 15 regarding the price range for check-in counter rental services as follows:

"6. In case the check-in counter is used for both international and domestic flights: the monthly rental price shall be determined as the average of the monthly rental prices applicable to international and domestic flights."

6. Amending Clause 2, Article 19 regarding the price range for ground handling services at Group B airports as follows:

"2. Service Price Range:

Unit of Measurement: VND/flight

7. Amending and supplementing Clause 2, Article 20 regarding the price range for aviation fuel supply and refueling services for domestic flights as follows:

"2. Service Price Range:

a) Maximum price level: 930,000 VND/ton.

b) Minimum price level shall be 50% of the maximum level.

The aforementioned maximum price level is determined under the condition that the Platts price for Jet A-1 is 145 USD/barrel and the exchange rate is 20,895 VND/USD. Based on the world oil price, phased import tax rates, the US dollar exchange rate, fuel suppliers calculate and specify specific prices to enter into contracts with customers. At the same time, they send the pricing regulations document to the Vietnam Civil Aviation Administration and the Price Management Department for reporting (along with the service pricing declaration document).

Article 2. Implementation

1. This Decision takes effect from December 1, 2011.

2. Other contents stipulated in Decision No. 426/QD-BTC remain valid. Contents not amended or supplemented in this Decision continue to be effective.

3. The Director of the Price Management Department, the Director of the Vietnam Civil Aviation Administration, heads of agencies, enterprises, and individuals using services are responsible for implementing this Decision./.