This Decision stipulates the maximum frame rate for passenger carriage fees of economy class on domestic flights still in a monopolistic position in Vietnam. The ceiling is determined based on flight distance and applies from 2012.
Scope of application
Airlines, Civil Aviation Administration of Vietnam
Key points
- Airlines must set ticket prices according to each flight route or group of routes but not exceeding the maximum frame rate for carriage fees as guided by the Civil Aviation Administration of Vietnam (Article 3).
- The maximum frame rate for passenger carriage fees of economy class on domestic flights still in a monopolistic position is 5,000 VND/passenger.km from 2011, reduced to 3,000 VND/passenger.km from 2012 for distances of 500 km or more (Article 1).
- The Civil Aviation Administration of Vietnam is responsible for guiding the determination of specific ticket prices for airlines and publishing a list of domestic flight routes grouped by distance (Article 2).
- Airlines must diversify ticket prices in accordance with market conditions and service quality, declare specific price levels before adjusting prices, and post prices in accordance with the law (Article 3).
- The Civil Aviation Administration of Vietnam is responsible for reviewing fluctuations in input cost factors and guiding adjustments to the frame rate for domestic air carriage fees (Article 2).
🌐 Social impact of this document
- To stabilize the airline ticket price market and protect consumer rights.
- Airlines may face difficulties in adjusting ticket prices to match operational costs and market demand.
- Consumers will benefit from stable and reasonable rates for passenger carriage fees of economy class.
❓ Frequently asked questions
What is the maximum frame rate for passenger carriage fees of economy class on domestic flights still in a monopolistic position?
From 2011, the maximum frame rate for passenger carriage fees of economy class on domestic flights still in a monopolistic position is 5,000 VND/passenger.km. From 2012, for distances of 500 km or more, this rate is reduced to 3,000 VND/passenger.km.
What responsibilities does the Civil Aviation Administration of Vietnam have in managing ticket prices?
The Civil Aviation Administration of Vietnam is responsible for guiding the determination of specific ticket prices for airlines, publishing a list of domestic flight routes grouped by distance, and reviewing fluctuations in input cost factors to adjust the frame rate.
Must airlines declare specific price levels before implementing price adjustments?
Yes, airlines must declare specific price levels to competent state authorities before implementing price adjustments.
What benefits do consumers receive from this decision?
Consumers will be protected through the stabilization of the airline ticket price market and reasonable rates for passenger carriage fees of economy class.
When does this Decision take effect?
This Decision takes effect from the date of issuance, which is December 6, 2011.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM |
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Number: 2967/QD-BTC |
Hanoi, December 6, 2011 |
Pursuant to …;
REGARDING THE MAXIMUM FRAMEWORK OF RATES FOR PASSENGER CARRIAGE FEES ON DOMESTIC ROUTES WITH A MONOPOLISTIC POSITION IN THE ECONOMY CLASS
THE MINISTER OF FINANCE
Pursuant to the Civil Aviation Law of Vietnam No. 66/2006/QH11 dated June 29, 2006;
Pursuant to Decree No. 170/2003/ND-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance; and Decree No. 75/2008/ND-CP dated June 9, 2008 of the Government amending and supplementing certain provisions of Decree No. 170/2003/ND-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance;
Pursuant to the 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 Decision No. 94/2009/QD-TTg dated July 16, 2009 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the Vietnam Civil Aviation Authority under the Ministry of Transport;
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 transport fare and airport service fees in Vietnam;
Pursuant to the results of the review of the framework of passenger carriage rates on domestic routes in economy class with a monopolistic position and the proposals of the Minister of Transport in Circular No. 8019/BGTVT-VT dated November 30, 2011 and Circular No. 8073/BGTVT-VT dated December 1, 2011;
At the proposal of the Director of the Price Management Department,
DECISION:
Article 1. The maximum framework of passenger carriage rates on domestic routes in economy class with a monopolistic position (excluding value-added tax) is set at 5,000 VND/passenger.km.
From 2012, the maximum framework of passenger carriage rates on domestic routes in economy class with a monopolistic position and a distance of 500 km or more is set at 3,000 VND/passenger.km (excluding value-added tax).
Article 2. Based on the ceiling of the rate framework prescribed in Article 1 above, the Vietnam Civil Aviation Authority shall be responsible for:
1. Guiding the determination of specific ticket prices uniformly applicable to airlines based on transportation costs, market conditions, and after reviewing the pricing plans of the airlines;
2. Specifying the maximum ticket price according to five groups of distances and publishing the list of domestic routes according to distance groups. Specifically:
a) Group 1: Distance less than 500 km;
b) Group 2: Distance from 500 km to less than 850 km;
c) Group 3: Distance from 850 km to less than 1,000 km;
d) Group 4: Distance from 1,000 km to less than 1,280 km;
đ) Group 5: Distance of 1,280 km or more.
3. Taking the lead and coordinating with relevant agencies and units to review fluctuations in input cost factors, guiding adjustments to the rate framework.
4. Implementing the reporting system to the Ministry of Transport and the Ministry of Finance regarding the implementation of regulations on air transport fares in accordance with the law; attaching related documents guiding ticket prices by route group, results of reviews of price declaration files of airlines for the joint monitoring and inspection by the ministries.
Article 3. Airlines shall set ticket prices for each route or route group but not exceed the guidance prices of the Vietnam Civil Aviation Authority as stipulated in Article 2 above; implement diverse ticket prices suitable to the market and service quality; declare specific prices to competent state authorities before adjusting prices and publicly display prices in accordance with 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 transport fares and airport service fees in Vietnam and Circular Joint No. 43/2011/TTLT/BTC-BGTVT dated March 23, 2011 of the Ministry of Finance and the Ministry of Transport amending and supplementing Circular Joint No. 103/2008/TTLT/BTC-BGTVT.
Article 4. This Decision takes effect from the date of signature. The Director of the Vietnam Civil Aviation Authority, the Director of the Price Management Department, heads of agencies, enterprises, and individuals providing and using services are responsible for implementing this Decision./.
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Place of Receipt: |
DEPUTY MINISTER
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