Decision No. 426/QD-BTC On the price levels and service fee frameworks for some air services at Vietnamese airports

Pursuant to …;

Regarding the price levels and price ranges for some air services at Vietnamese airports

__________________

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

Pursuant to the results of the price scheme assessment and the proposal of the Ministry of Transport in Document No. 269/BGTVT-VT dated January 15, 2010 and Document No. 644/BGTVT-VT dated January 29, 2010;

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

DECISION:

Article 1. Issued together with this Decision is the Price List and Price Range for Some Air Services at Vietnamese Airports, including:

1. Aircraft handling service price for departure and arrival;

2. Aircraft takeoff and landing fee;

3. Air cargo security screening service price;

4. Passenger service price at airports;

5. Aircraft support service price for flight operations;

6. Aircraft parking service price range;

7. Passenger boarding bridge rental service price range;

8. Passenger check-in counter rental service price range;

9. Baggage conveyor belt rental service price range;

10. Automated baggage handling service price range;

11. Office space rental service price range for airline representative offices within the terminal building;

12. Ground handling service price range at Class B airports;

13. Domestic flight aircraft fueling service price range.

Article 2. The price levels and price ranges stipulated in this Decision do not include value-added tax.

Article 3. This Decision takes effect from April 1, 2010. Decree No. 13/2006/QD-BTC dated March 13, 2006 of the Ministry of Finance on the prices of some specialized aviation services and other regulations inconsistent with this Decision are hereby abolished.

Article 4. The Director of the Civil Aviation Administration of Vietnam, the Director of the Price Management Department, heads of agencies, enterprises, and individuals using these services shall be responsible for implementing this Decision.

PRICE LIST AND PRICE RANGE 

FOR SOME AIR SERVICES AT VIETNAMESE AIRPORTS

(Issued together with Decision No. 426/QD-BTC dated February 25, 2010 of the Ministry of Finance) 

Chapter 1.

GENERAL PROVISIONS 

Article 1. Units of measurement for service prices

1. Maximum Takeoff Weight (MTOW): the maximum takeoff weight recorded in the Operating Specifications of each aircraft.

2. Unit of cargo volume (including packaging):

a) Minimum volume for air cargo security screening service pricing at airports: Ton.

b) In a single air waybill (less than one ton): calculated based on the actual volume of individual items.

3. Designated seats: the number of passenger seats installed on the aircraft according to the manufacturer's specifications.

Article 2. Classification of Airports

1. Vietnamese airports are classified into groups as follows:

a) Group A: Noi Bai International Airport, Da Nang International Airport; Tan Son Nhat International Airport, Phu Bai Airport, Cam Ranh Airport, Cat Bi Airport.

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

2. Based on actual conditions, the Civil Aviation Administration of Vietnam shall report to the Ministry of Transport for supplementation and adjustment of the airport group list in accordance with service supply capacity standards, take-off and landing volume, and passenger throughput at airports.

Article 3. Provisions on Service Charge Collection

1. Currency for Service Charges

a) For international flight services: The currency for service charges is specified in United States Dollars (USD). Payment of service charges shall be made in accordance with current regulations on foreign currency price management by the Vietnamese State.

b) For domestic flight services: The currency for service charges is Vietnamese Dong (VND).

2. Organizations and individuals operating aircraft entering or leaving Vietnamese airports shall be responsible for paying the service providers before the aircraft takes off from the airport or fully settling the payment according to the signed service contracts.

Article 4. Exempted Charges

1. Flights recorded in flight permits or implementation letters issued by specialized state management agencies in civil aviation (Vietnamese Civil Aviation Administration) include:

a) Official aircraft flights (excluding charter or leased aircraft for official purposes);

b) Government aircraft flights;

c) Search and rescue flights, humanitarian aid cargo transportation, flood relief, disaster relief, and other humanitarian missions.

2. Flights that return to land at the departure airport within 30 minutes after takeoff due to any reason.

3. Diplomatic mail and humanitarian aid cargo.

4. Spare parts and materials for aircraft maintenance and supplies for airline operations (excluding duty-free goods on flights).

5. Passengers traveling on official aircraft of Vietnam and foreign government delegations visiting officially or attending conferences organized by Vietnamese Party, State, and Government leaders.

6. Transit passengers staying less than 24 hours: Only applicable when the arrival and departure segments are on the same passenger ticket and baggage check.

7. Flight crew members (including those changing airports).

8. Children under two years old: Calculated at the time of departure for the first leg.

9. Other cases shall be compiled and reported by the Civil Aviation Administration of Vietnam to the Ministry of Transport for regulation.

Article 5. Reduced Charges

To encourage airlines flying to and from Vietnam, based on actual conditions at airports, the Civil Aviation Administration of Vietnam shall propose to the Ministry of Transport policies for reduced charges on the principle of fairness, without discrimination; creating a healthy competitive environment and aligning with service quality for the following subjects:

1. Preferential pricing policy for a period not exceeding 36 months, with a maximum reduction of 50% for the following subjects:

a) Airlines opening new routes to and from Vietnam where no other airline has operated.

b) New airlines operating on existing routes.

c) Airlines operating 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 propose to the Ministry of Transport reduced charge policies to encourage airlines.

2. Reduced service charge policies for carriers whose total monthly invoice amounts are as follows:

a) For air services with state-regulated prices or price ranges provided for international flights:

- Value over $50,000 to under $100,000: 3% reduction

- Value from $100,000 to under $300,000: 5% reduction

- Value from $300,000 to under $500,000: 7% reduction

- Value over $500,000: 10% reduction

b) For air services with state-regulated prices or price ranges provided for domestic flights:

- Value over VND 50 billion to under VND 100 billion: 3% reduction

- Value from VND 100 billion to VND 200 billion: 5% reduction

- Value from VND 200 billion to under VND 300 billion: 7% reduction

- Value over VND 300 billion: 10% reduction

c) Determination of the total monthly invoice amount as the basis for calculating specific reduction rates as follows:

The total monthly invoice amount is the total amount that the carrier must pay to the Airports Corporation Limited based on state-regulated prices in Chapter II, Part I (excluding air traffic control service fees and passenger service fees at airports) and specific service fee prices set by the Airports Corporation Limited within the state-regulated price range in Chapter II, Part II (excluding fuel supply service fees for domestic flights) provided by enterprises under the Airports Corporation Limited or the Airports Corporation Limited to the carrier (including both international and domestic flights) within one month (based on calendar days).

3. In cases where there are clear signs of decline in the air transport market; or to encourage and attract international airlines to fly to and from Vietnam (excluding Noi Bai International Airport and Tan Son Nhat International Airport), the Civil Aviation Administration of Vietnam shall proactively consider proposing to the Ministry of Transport to issue reduced charge policies at airports to encourage and attract carriers to maintain and develop routes to and from Vietnam.

4. In special cases, the Civil Aviation Administration of Vietnam shall propose specific reduction rates and application periods to the Ministry of Transport after obtaining the agreement of the Ministry of Finance.

Article 6. Some terms in this Regulation shall be understood as follows:

1. Flight: is the operation of an aircraft from takeoff at one airport to landing at another airport immediately thereafter.

2. International flight: is a flight with a point of landing or takeoff at airports outside the territory of Vietnam.

3. Domestic flight: is a flight with both points of takeoff and landing within the territory of Vietnam.

4. Goods (including containers) under air waybill: are goods with a place of origin (place of dispatch) in Vietnam.

5. Carrier: is a legal entity, organization, or individual using aircraft owned by themselves or leased from others to carry out the transportation of goods, passengers, and general aviation activities.

6. Charter flight: is a dedicated flight used entirely separately or combined with commercial transport and confirmed or announced by the competent state agency according to the provisions of Government Decree No. 03/2009/NĐ-CP dated January 9, 2009 on ensuring charter flights.

7. Official flight: is a flight carried out by aircraft of armed forces, customs, and other state agencies specifically for official purposes.

8. The price level, price range for services in this regulation does not include value-added tax.

Chapter 2.

SPECIFIC PROVISIONS

PART 1. PRICING OF AIR SERVICES REGULATED BY THE STATE 

Article 7. Pricing of Air Traffic Control Services for Departure and Arrival

1. Scope of application: Carriers operating aircraft that conduct flights departing from or arriving at Vietnamese airports.

2. Service pricing:

a) Pricing applicable to international flights: The pricing applicable to international flights for each landing or takeoff at Vietnamese airports is as follows:

Unit of measurement: USD per landing or takeoff

b) Pricing applicable to domestic flights: The pricing applicable to domestic flights includes landing and takeoff control services at Vietnamese airports as follows:

Unit of measurement: VND per domestic flight

3. Pricing rules in certain special cases:

a) Charge at 50% of the pricing specified in point 2 above (calculated based on the flight route from the departure airport to the arrival airport) corresponding to the respective MTOW for:

- Vertical take-off aircraft and other non-aircraft flying means (flying visually during the flight);

- Aircraft required to land at Vietnamese airports (not the originally planned airport) due to force majeure reasons (technical, weather);

- Aircraft conducting technical inspection flights, airport transfer flights, geological surveys, aerial photography, and training flights (not combined with commercial operations) to Vietnamese airports. In case of takeoff and landing at the same airport, the pricing will be calculated based on the actual control distance in kilometers (km).

b) Charge at 30% of the pricing specified in point 2 above for aircraft that must return to the departure airport after taking off for 30 minutes or more due to reasons not attributable to the airport or air traffic control.

In case the return is due to the fault of the airport or air traffic control, the Civil Aviation Authority Corporation or the Civil Aviation Operation Assurance Corporation shall negotiate with the relevant parties to reasonably settle the actual costs incurred due to the aircraft returning to the departure airport.

Article 8. Landing and Take-off Charges for Aircraft

1. Scope of Application: Air carriers operating aircraft landing at Vietnamese airports.

2. Service pricing:

a) Landing and take-off charges applicable to international flights at Group A airports:

b) Landing and take-off charges applicable to domestic flights at Group A airports:

c) Landing and take-off charges applicable to flights landing at Group B airports in Vietnam: Charged at 60% of the rates specified for international and domestic flights corresponding to the Maximum Take-Off Weight (MTOW) at Group A airports.

3. Pricing rules in certain special cases:

a) Charged at 50% of the rates specified in point 2 above corresponding to the MTOW for:

- Vertical take-off aircraft and other non-aircraft flying means (flying visually during the flight);

- Aircraft landing at Vietnamese airports (not the intended airport) due to force majeure (technical issues, weather conditions);

- Technical landing aircraft (fueling), not picking up passengers from the landing airport;

- Aircraft conducting technical test flights, airport transfer flights, and training flights (not combined with commercial operations).

b) Charged at 30% of the rates specified in point 2 above for aircraft that must return to the departure airport more than 30 minutes after take-off, not due to the fault of the airport or air traffic control.

In cases where the fault lies with the airport or air traffic control, the Airports Corporation or the Air Navigation Service Provider shall negotiate with relevant units to reasonably compensate actual costs incurred due to the aircraft having to return to the departure airport.

Article 9. Security Screening Charges for Aviation Cargo

1. Scope of Application: Carriers using security screening services for passengers, baggage, and cargo at Vietnamese airports using specialized equipment.

2. Service pricing:

a) Security screening charges applicable to international flights at Group A airports:

- Passenger and baggage screening:

Unit of measurement: USD/per flight

- Cargo screening per air waybill: 15 USD/ton of cargo.

b) Security screening charges applicable to domestic flights at Group A airports.

- Passengers and baggage

Unit of measurement: VND/per flight

- Cargo per air waybill: 140,000 VND/ton of cargo

c) Security screening charges applicable to domestic flights at Group B airports: Charged at 60% of the rates specified for international and domestic flights corresponding to the MTOW at Group A airports in Vietnam.

Article 10. Passenger Service Charges at Airports

1. Scope of Application: Passengers departing from terminals at Vietnamese airports.

2. Service pricing:

a) Passenger service charges for international flights:

Unit of measurement: USD/per passenger

b) Passenger service charges for domestic flights:

Unit of measurement: VND/per passenger

3. Special pricing rules: Children aged 2 to 12 years old (at the time of the first leg departure) are charged at 50% of the rates specified in point 2 above.

4. Rules on the method of collecting passenger service charges

a) Passenger service charges at Vietnamese airports are collected through carriers arriving to and departing from Vietnam. Passengers pay passenger service charges together with air transport fares.

b) Carriers pay monthly passenger service charges for international flights to airport operators based on passenger manifests. Transfer fees are borne by the recipient.

c) Basis for payment: The airport operator prepares a "Collection Notice" based on the passenger manifest of each flight. The amount in the "Collection Notice" is determined by the formula:

Where:

- The amount collected from adult passengers is calculated as follows:

- The amount collected from child passengers is calculated as follows:

d) Collection commission fee: The collection commission is set at 1.5% (inclusive of VAT) of the monthly payment made by the airline for each settlement period of passenger service charges.

Formula:

f) Overpayment (-) underpayment (+) verified: Airlines have the right to request verification if discrepancies or errors are found in the "Collection Notice". Verification and adjustment payments (if any) are settled in the next period following the disputed payment period.

g) Documentation proving exemption or discount eligibility: Passenger manifest and special aviation documentation in electronic format.

h) Payment between the airport operator and the airline is carried out according to the contract signed by both parties detailing payment terms, methods, and late payment penalties. The late payment penalty rate is 0.5% of the overdue amount per week.

i) No collection commission is applied for non-scheduled flights.

Article 11. Price of Support Services for Air Traffic Management Operations

1. Scope of application: Vietnam Air Traffic Management Corporation

2. Service pricing:

a) Northern Airports Corporation: 60,000 VND per transit flight not exempted according to regulations.

b) Central Airports Corporation: 430,000 VND per transit flight not exempted according to regulations.

c) Southern Airports Corporation: 60,000 VND per transit flight not exempted according to regulations.

Section 2. FRAMEWORK PRICES FOR AIRPORT SERVICES REGULATED BY THE STATE

Article 12. General Provisions

Based on current laws governing the management of airport service prices and the framework prices set forth below, service providers at airports shall determine specific prices commensurate with the quality of services, applicable conditions, and market circumstances; simultaneously, they shall comply with price registration, display, and public disclosure requirements under relevant laws on price management.

Article 13. Framework Prices for Aircraft Parking Services (Parking Charge)

1. Scope of application: Carriers requiring this service at Vietnamese airports.

2. Framework prices based on flight type:

a) Framework prices applicable to international flights at Group A airports

Unit of measurement: USD per ton MTOW

b) Framework prices applicable to domestic flights at Group A airports

Unit of measurement: VND per ton MTOW

c) Framework prices applicable to flights at Group B airports: Charged at 70% of the corresponding rates at Group A airports.

3. Framework prices applicable to carriers choosing Vietnamese airports as their home base.

a) Framework prices applicable at Group A airports

Unit of measurement: VND per aircraft/month

b) Framework prices applicable at Group B airports: Charged at 70% of the corresponding rates at Group A airports.

c) The home base airport for carriers operating in Vietnam is designated by the Civil Aviation Administration of Vietnam.

4. Parking time is calculated from the moment the chocks are placed until they are removed from the aircraft wheels.

Parking time exceeding 18 hours up to 24 hours is counted as one day, and for aircraft parked over 24 hours and taking off within the next 24 hours, an additional day is counted. This calculation method will be applied to subsequent 24-hour periods.

Article 14. Framework Prices for Passenger Bridge Rental Services (Aerobridge Charges)

1. Scope of application: Carriers requiring this service at Vietnamese airports.

2. Framework prices:

a) Framework prices applicable to international flights

Unit of measurement: USD per flight

b) Framework prices applicable to domestic flights:

Unit of measurement: VND per flight

c) For combined domestic and international flights: Charged at 65% of the corresponding rate for international flights.

Article 15. Framework Prices for Passenger Check-in Counter Rental Services

1. Scope of application: Carriers requiring this service at Vietnamese airports.

2. Framework prices for renting passenger check-in counters (Check-in counter) are calculated in two ways: Monthly and per flight, depending on the customer's choice.

a) Framework prices applicable to international flights at Group A airports.

b) Framework prices applicable to domestic flights at Group A airports

c) Framework prices applicable to domestic flights at Group B airports: Charged at 70% of the corresponding rate at Group A airports.

3. Framework prices for renting other types of passenger check-in counters, including boarding counters (Boarding counter), service desks (Service Desk), and transit counters (Transit counter): Charged at 20% of the corresponding rate for passenger check-in counters at Group A airports.

4. Contents of the rental service for counters:

a) Reasonable layout of counter space;

b) Counters;

c) Computers and related equipment (excluding specialized computer software);

d) Counter signage;

đ) Conveyors attached to counters;

e) Electricity and water supply for the counter area;

g) Repair and management costs related to the service.

5. The duration of counter usage and the number of counters per flight are agreed upon between the airport and the customer based on industry practices, the airport's counter provision capacity, and the carrier's regulations on check-in procedures. 

Article 16. Framework for the Price of Baggage Conveyor Belt Rental Services

1. Scope of application: Air carriers requiring the use of baggage conveyor belts at airports in Group A that have not yet implemented automatic administrative processing services:

2. Framework prices:

a) For international flights:

Unit of measurement: USD/time

b) For domestic flights:

Unit of measurement: VND/time

Article 17. Framework for the Price of Automatic Baggage Handling Services (Automatic Baggage Sorting Service)

1. Scope of application: Air carriers requiring the use of automatic baggage sorting conveyor belts at Vietnamese airports.

2. Framework prices:

a) Framework prices applicable to international flights at Group A airports

Unit of measurement: USD/trip

b) Framework price applicable for domestic flights at airports in Group A.

Unit of measurement: VND/flight

c) Framework price applicable for domestic flights at airports in Group B: Equivalent to 70% of the corresponding revenue level for airports in Group A.

Article 18. Framework for the Price of Renting Office Space for Airline Representative Offices within Terminal Areas

1. Scope of application: Carriers requiring this service at Vietnamese airports.

2. Framework price for Airports Group A

b) Framework price for Airports Group B: Equivalent to 50% of the corresponding revenue level for Airports Group A.

3. Conditions for application: The rental price for office space, pure workspace, and one parking spot outside the terminal for the Office.

Article 19. Framework for Comprehensive Ground Service Fees at Airports in Group B

1. Scope of application: Domestic air carriers requiring the use of these services at Vietnamese airports.

2. Framework prices:

Unit of measurement: VND/flight

3. Conditions for application

The prices above include the following services:

a) Landing/takeoff service fees; aircraft towing service fees (if applicable)

b) Ground commercial technical services based on meeting the minimum requirements of each flight and the actual capacity of each airport.

c) Terminal-related vehicle usage services directly related to flight services and the rental fee for the airline's representative office (excluding parking lots).

d) General security assurance, security screening of luggage and passengers for the flight.

đ) Free parking for aircraft during the initial landing period.

Article 20. Framework for Aviation Fuel Supply and Refueling Service Prices for Domestic Flights

1. Scope of application: Air carriers requiring the use of these services at Vietnamese airports.

2. Framework prices:

a) Maximum rate: 750,000 VND/ton;

b) Minimum rate equivalent to 50% of the maximum rate.