Decision No. 2345/QD-BGTVT dated August 08, 2017 on charges and price brackets of certain air services in domestic airports and aerodromes

DECISION

ON CHARGES AND PRICE BRACKETS OF CERTAIN AIR SERVICES IN DOMESTIC AIRPORTS AND AERODROMES

MINISTER OF TRANSPORT

Pursuant to the Law on Vietnam civil aviation No. 66/2006/QH11 dated June 29, 2006 and the Law on Amendments to certain articles of the Law on Vietnam civil aviation No. 61/2014/QH13 dated November 21, 2014;

Pursuant to the Law on Prices No. 11/2012/QH13 dated June 20, 2012;

Pursuant to the Government’s Decree No. 177/2013/ND-CP dated November 14, 2013 specifying and providing guidelines for implementation of certain articles of the Law on Prices and the Government’s Decree No. 149/2016/ND-CP dated November 11, 2016 on amendments to certain articles of the Decree No. 177/2013/ND-CP;

Pursuant to the Government’s Decree No. 12/2017/ND-CP dated February 10, 2017 on functions, tasks, power and organizational structure of the Ministry of Transport;

Pursuant to the Circular No. 36/2015/TT-BGTVT dated July 24, 2015 by the Minister of Transport on management of domestic air transport service charges and air service charges and the Circular No. 07/2017/TT-BGTVT dated March 14, 2017 by the Minister of Transport on amendments to certain articles of the Circular No. 36/2015/TT-BGTVT;

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HEREBY DECIDES:

Article 1.Promulgation together with this Decision the schedules and price brackets of certain air services in domestic airports and aerodromes, including:

1. Air services that the State specifies charges:

a) Takeoff and landing service;

b) Air security service;

c) Passenger service.

2. Air services that the State specifies price brackets:

a) Ramp service;

b) Check-in counter services;

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d) Passenger stairs service;

dd) Lump-sum ground handling services at airports or aerodromes (for those that lump-sum payment is no longer applies to);

e) Automatic baggage classification service.

Article 2.Charges and price brackets stated herein excluding value-added tax.

Article 3.

1. This Decision comes into force from October 01, 2017.

2. Article 4 on the schedule of air navigation services and supporting services thereof attached to the Decision No. 4213/QD-BGTVT dated December 28, 2016 by the Minister of Transport on promulgation of the schedule of air navigation services and supporting services thereof.

3. Organizations, individuals and carriers that are eligible to enjoy price incentives shall be entitled to continue using such incentives until the duration of incentives expires.

Article 4.Chief of secretariat and chief of inspectorate of the Ministry of Transport, Director of the Department of Transport, Director of the Civil Aviation Authority of Vietnam, heads of authorities, organizations and individuals providing and using air services shall implement this Decision.

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PP. MINISTER
DEPUTY MINISTER




Le Dinh Tho

SCHEDULE AND PRICE BRACKETS

OF CERTAIN AIR SERVICES IN DOMESTIC AIRPORTS AND AERODROMES
(Attached to the Decision No. 2345/QD-BGTVT dated August 08, 2017 by the Minister of Transport)

Chapter I

GENERAL PROVISIONS

Article 1. Definitions

For the purposes of this Decision, the terms below shall be construed as follows:

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2. “international flight” is a flight having a takeoff or landing point located outside the territory of Vietnam.

3. “domestic flight” is a flight having takeoff and landing points located within the territory of Vietnam.

4. “carrier" is a legal entity, organization or individual that uses their own aircraft or leases aircraft to carry cargo and/or passengers and operate general aviation.

5. "VIP flight" is a flight used, separately or in combination with commercial purposes, verified or noticed by competent authorities in accordance with the Government’s Decree No. 03/2009/ND-CP dated January 09, 2009 on ensuring VIP flights.

6. "special flight” is a flight operated by a military aircraft or dedicated aircraft of customs, police and civil aircraft to use for the State services.

7. "maximum takeoff weight (MTOW)” is the maximum takeoff weight specified in the Operation Specification of the aircraft.

The carrier operating arrival/departure flight to/from domestic airports or aerodromes shall provide legal documents certifying the MTOW of aircrafts for a service provider.

8. "goods (including containers) specified in an air waybill" are goods having the place of delivery of (original) goods located in Vietnam.

9. Unit of weight of goods (including packaging):

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b) The unit of the goods of a single air waybill (under 1 tonne) shall be calculated according to the actual weight of the package.

10. “designed capacity” is the number of passengers’ seats installed in the cabin in accordance with regulations of the aircraft’s manufacturer.

11. “base airport or aerodrome” is an airport or aerodrome that the Civil Aviation Authority of Vietnam appoints to carriers operating in Vietnam, including overnight parking of aircrafts.

Article 2. Classification of aviation groups

1. The Ministry of Transport shall divide airports in Vietnam into 3 following groups:

a) Group A airports that are round-the-clock airports, including: Noi Bai, Da Nang, Tan Son Nhat, Cam Ranh, Cat Bi, Can Tho, Phu Quoc, Lien Khuong, Phu Bai and Buon Ma Thuot airports;

b) Group B airports that are airports not included in group A and group C airports;

c) Group C airports that are socio-economic airports, including: Con Dao, Dien Bien, Ca Mau and Rach Gia airports.

2. Depending on actual situations, the Civil Aviation Authority of Vietnam shall request the Ministry of Transport to amend the list of airport groups suitable for standards of service provision capacity, takeoff and landing output and passengers passing through airports.

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1. Rules for determining time frames:

a) Peak time shall be time frames having actual flights accounting for at least 90% over the operation limit of an airport.

b) Off-peak time shall be time frames having actual flights accounting for 0-30% over the operation limit of an airport.

c) Normal time shall be the operating time excluding peak time and off-peak time.

2. For specific time frames, the Civil Aviation Authority of Vietnam shall issue and actively update and publish the revision of peak time or off-peak time in airports in compliance with each operating season.

Article 4. Charge collection

1. Currency for payment

a) Charges for services provided for international flights: US dollar (USD). The issuance and payment of service charges shall be made in conformity with regulations of law on foreign exchange.

b) Charges for services provided for domestic flights: Vietnam dong (VND).

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Article 5. Charge exemption

1. Takeoff and landing service charges shall be exempted for the following flights:

a) VIP flights (excluding VIP flights in combination with commercial purposes);

b) Special flights;

c) Flights performing search and rescue tasks, transporting humanitarian aids, natural disasters relief and performing other humanitarian tasks;

d) Flights having to return to land at the departure airport within 30 minutes after takeoff due to any reasons.

2. Air security service charges shall be exempted for:

a) Goods consigned by foreign affairs or goods used for humanitarian aids;

b) Goods or spare parts delivered to be repaired and materials or products of airlines serving flights (excluding duty-free products selling in cabins);

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d) Transit passengers within 24 hours (excluding transit passengers to transfer from the domestic flight to the international one and vice versa): Only applying to the flight arrives in and the flight departs from Vietnam that are displayed on the same ticket of passenger and baggage;

dd) Cabin crew (including change of aerodrome);

e) Children under the age of 2: calculated at the time of the first departure.

3. Passenger service charges shall be exempted for:

a) Passengers of the flights eligible for charge exemption mentioned in Clause 1 this Article;

b) Transit passengers within 24 hours (excluding transit passengers to transfer from the domestic flight to the international one and vice versa): Only applying to the flight arrives in and the flight departs from Vietnam that are displayed on the same ticket of passenger and baggage;

c) Cabin crew (including change of aerodrome);

d) Children under the age of 2: calculated at the time of the first departure.

Article 6. Charge adjustment

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1. Charges for services provided for international flights:

Service charge specified in the invoice (USD)

Reduction (%)

From over 125,000 to under 250,000

1.5%

From 250,000 to under 750,000

2.5%

From 750,000 to under 1,500,000

3.5%

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5%

2. Charges for services provided for domestic flights:

Service charge specified in the invoice (VND)

Reduction (%)

From over 5 billion to under 10 billion

1.5%

From 10 billion to under 15 billion

2.5%

From 15 billion to under 30 billion

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From 30 billion or over

5%

3. The payment for service charges shall be calculated separately for invoices of services provided for international flights and those for domestic flights. Deadline: 1 month.

Article 7. Methods of collecting air security service charges for passengers and baggage and passenger service charges at airports

1. The air security service charges for passengers and baggage (mentioned in Clause 1 Article 9 herein) and the passenger service charges at airports or aerodromes (mentioned in Article 10 herein) shall be collected by carriers operating departure/arrival flights from/to Vietnam. Passengers shall make payment for air security service charges for passengers and baggage, passenger service charges and air transport service charges.

2. Carriers shall make payment for air security service charges for passengers and baggage and passenger service charges to providers of monthly passenger service and air security service (money transfer cost shall be covered by the transferor).

3. Payment basis: The provider of passenger service or air security service shall make a “charge collection notice” on the basis of passenger manifests of flights. The amount specified in the "charge collection notice” shall be determined as follows:

Payable amount specified in the “charge collection notice”

=

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+

Amount collected from child passengers

+

Fine for late payment in the previous month (if any)

+

Confirmed surplus amount (-) deficit amount (+)

-

Collection commission

Where:

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Amount collected from adult passengers

=

Service charge

x

Number of passengers in the passenger manifest

-

Number of passengers eligible for charge remission

- The amount collected from child passengers shall be determined as follows:

Amount collected from child passengers

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Service charge

x

Number of passengers eligible for charge remission

-

Number of passengers eligible for charge exemption

4. The collection commission shall be determined according to the rate of 1.5% (VAT inclusive) the monthly payment made by an airline for each payment period for passenger service charges and air security service charges for passengers and baggage.

Formula:

Collection commission

=

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x

Amount collected from adult passengers

+

Amount collected from child passengers

5. The confirmed surplus amount (-) deficit amount (+): The airline shall be entitled to request the confirmation of such amount if any error is found in the "charge collection notice". The re-confirmation and repayment of the different amount (if any) shall be made immediately in the period subsequent the disputed payment period.

6. Documents proving the people eligible for remission of charges: The passenger manifest and electronic forms related to aviation.

7. Payment between the service provider and the airline shall be made in accordance with the agreement concluded by and between both parties specifying the date and method of payment and deadline for the fine of late payment. The fine of late payment shall be 0.5% of the payment amount per week.

8. For passengers travelling by a domestic flight transferred to an international flight:

a) Domestic schedule: Collecting domestic air security service charges for passengers and baggage and passenger service charges regulated by the airport where the flight departs;

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9. For passengers travelling by an international flight transferred to a domestic flight: Collecting domestic air security service charges for passengers and baggage and passenger service charges regulated by the airport where the flight transfers.

Chapter II

SPECIFIC PROVISIONS

Section 1. AIR SERVICE CHARGES REGULATED BY THE STATE

Article 8. Takeoff and landing service charges

1. Applied to: Carriers whose aircrafts land in domestic airports or aerodromes.

2. Charges for international flights in group A and group B airports:

MTOW

Initial charge (USD/time)

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Under 20 tonnes

84

From 20 to under 50 tonnes

84

3.7

From 50 to under 150 tonnes

195

5.3

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725

5.7

From 250 tonnes or over

1,295

6.3

3. Charges for domestic flights in group A and group B airports shall be based on the landing time of each flight in accordance with flight schedules licensed by the Civil Aviation Authority of Vietnam.

a) Charges applying to the normal time:

- Charges applying from October 01, 2017 to June 30, 2018 inclusive:

MTOW

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Initial charge per tonne (USD/tonne)

Under 20 tonnes

698,000

0

From 20 to under 50 tonnes

698,000

29,000

From 50 to under 150 tonnes

1,568,000

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From 150 to under 250 tonnes

5,868,000

47,000

From 250 tonnes or over

10,568,000

54,000

- Charges applying from July 01, 2018:

MTOW

Initial charge (USD/time)

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Under 20 tonnes

765,000

0

From 20 to under 50 tonnes

765,000

32,000

From 50 to under 150 tonnes

1,725,000

47,000

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...

6,425,000

52,000

From 250 tonnes or over

11,625,000

59,000

b) Charges applying to the peak time shall be collected equivalent to 115% of the charges mentioned in Point a Clause 3 this Article.

c) Charges applying to the off-peak time shall be collected equivalent to 85% of the charges mentioned in Point a Clause 3 this Article.

4. Charges applying to the flight landing at group C airport shall be collected by 60% of the charges applying to the normal time suitable for the MTOW corresponding to the flight landing at group A and group B airports.

5. Charges applying to certain special cases:

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- Rotorcrafts and other flying objects that are not aircrafts (self-visual flying during flying process);

- Aircrafts landing at domestic airports/aerodromes (not intended landing airports) due to force majeure events (e.g., weather, technical issues, passenger first-aid, terrorism, crime, etc.);

- Aircrafts landing technically and not taking passengers from landing airports;

- Aircrafts flying to check technical issues, to change airports and for training (not in combination with commercial operation).

b) Collecting 30% of the charges mentioned in Clause 2, Clause 3 and Clause 4 this Article for the aircraft after landing for at least 30 minutes that have to return to the departure airport not due to mistakes caused by the operator of the airport/aerodrome.

In the cases where the mistakes caused by the airport/aerodrome’s operator, the Airports Corporation of Vietnam shall negotiate with authorities to pay or offset appropriately the actual costs arising caused by the return of the aircraft to the departure airport.

Article 9. Air security service charges

1. Air security service charges for passengers and baggage

1.1. Applied to: Air passengers following procedures at terminals of domestic airports or aerodromes.

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- For international passengers and baggage: USD 2/passenger;

- For domestic passengers and baggage:

From October 01, 2017 to December 31, 2017 inclusive: VND 11,818/passenger.

From January 01, 2018 to March 31, 2018 inclusive: VND 13,636/passenger.

From April 01, 2018: VND 18,181/passenger.

1.3. Special case: Charges for children from the age of 2 to under the age of 12 (calculated at the time of the first departure) shall be collected equivalent to (=) 50% of the charges mentioned in Point 1.2 above.

1.4. Air security services for passengers and baggage include:

- Security screening for passengers and baggage;

- Aircraft security;

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- Management and supervision of passengers ineligible to immigrate and staying within 24 hours;

- Identification of passengers and baggage before boarding the aircraft;

- Watchstanding and ensuring security in the airport area.

2. Air security service charges for passengers ineligible to immigrate and staying for at least 24 hours:

2.1. Applied to: Carriers having passengers ineligible to immigrate and staying for at least 24 hours.

2.2. Service charges:

- Hourly charge: USD 9/passenger/hour;

- Daily charge: USD 90/passenger/hour.

2.3. How to calculate charges:

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b) The time for using services shall be determined from the day on which the parties transfer and conclude a transfer record to the day on which the passenger is rejected to immigrate and concludes the transfer record.

c) The minimum time limit for using the service once shall be an hour; under 60 minutes shall be deemed to be an hour. Over 10 hours shall be calculated as daily charges.

3. Air security service charges for packages:

3.1. Applied to: Carriers using air security services for packages.

3.2. Service charges:

No.

Airport

Service charge

International (USD/tonne)

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1

Group A, Group B

17.0

140,000

2

Group C

10.2

84,000

Air security service charges for packages include:

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- Security supervision and detection to protect the aircraft;

- Identification of packages before boarding the aircraft.

4. Air security charges for packages after screening from the warehouse to the restricted area at the airport:

4.1. Applied to: Organizations and individuals using air security services for packages from the screening area at the warehouse to the apron of the airport.

4.2. Charge: VND 120,000/tonne.

5. Air security service charges for vehicles transporting packages and equipment serving restricted areas of the airport/aerodrome:

5.1. Applied to: Organizations and individuals using vehicles transporting packages or equipment serving isolated areas.

5.2. Service charge: VND 30,000/turn.

5.3. Service contents: Checking vehicles and security seals of servings, petrol and oil and goods serving air operation before moving to the maneuvering area.

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1. Applied to: Air passengers following procedures at terminals of domestic airports or aerodromes.

2. Service charges:

a) For passengers travelling by an international flight:

Unit: USD/passenger

Airport

Charge

1. Noi Bai

25

2. Tan Son Nhat

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3. Da Nang

20

4. Phu Quoc

18

5. Can Tho

16

6. Lien Khuong, Cam Ranh, Cat Bi, Vinh

14

7. Others

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b) For passengers travelling by a domestic flight:

- Charges applying from October 01, 2017 to December 31, 2017 inclusive:

Unit: VND/passenger

Airport

Charge

Group A

68,181

Group B

63,636

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54,545

- Charges applying from January 01, 2018 to March 31, 2018 inclusive:

Unit: VND/passenger

Airport

Charge

Group A

72,727

Group B

68,181

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54,545

- Charges applying from April 01, 2018 to June 30, 2018 inclusive:

Unit: VND/passenger

Airport

Charge

Group A

77,272

Group B

68,181

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54,545

- Charges applying from July 01, 2018:

Unit: VND/passenger

Airport

Charge

Group A

90,909

Group B

72,727

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54,545

3. Special case: Charges for children from the age of 2 to under the age of 12 (calculated at the time of the first departure) shall be collected equivalent to (=) 50% of the charges.

Section 2. AIR PRICE BRACKETS REGULATED BY THE STATE

Article 11. General regulations

Pursuant to applicable regulations on management of air service charges and price brackets stated below, service providers at airports shall regulate specific charges suitable for the quality of services, requirements for application and market situations; shall declare, list and publish prices in accordance with regulations of law on management of prices.

Article 12. Parking charges

1. Applied to: Carriers using such services at domestic airports/aerodromes.

2. Service price brackets:

a) Charges for international flights at group A and group B airports:

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Parking duration

Service price bracket

Min

Max

Free of charge for the first 2 hours

From over 2 hours to 5 hours

1.96

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From over 5 hours to 8 hours

2.45

3.5

From over 8 hours to 12 hours

2.66

3.8

From over 12 hours to 14 hours

2.80

4.0

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2.94

4.2

Over 18 hours (daily price: USD/tonne/day)

2.94

4.2

b) Charges for domestic flights at group A and group B airports:

Unit: VND/MTOW tonne

Parking duration

Service price bracket

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Max

Free of charge for the first 2 hours

From over 2 hours to 5 hours

14,000

20,000

From over 5 hours to 8 hours

19,000

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From over 8 hours to 12 hours

20,000

29,000

From over 12 hours to 14 hours

21,000

30,000

From over 14 hours to 18 hours

22,000

31,000

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23,000

32,000

c) If the aircraft parks to serve both the international flight and the domestic flight, the apron rent per flight shall be determined by the average rent applying to the international flight and the domestic flight;

d) The price bracket applying to the flight at group C airport shall be collected by 70% of the charges applying to group A and group B airports.

3. The price bracket applying to the flights operated by the carrier choosing the domestic airport/aerodrome to be the base airport/aerodrome:

- From October 01, 2017 to June 30, 2018 inclusive: 30% of the charges applying to the domestic flight mentioned in Points b and d Clause 2 this Article.

- From July 01, 2018: 50% of the charges applying to the domestic flight mentioned in Points b and d Clause 2 this Article.

4. If the aircraft has to park at an airport/aerodrome that is not a base one of the carrier due to a force majeure event: 50% of the charges applying to the corresponding aircraft.

5. The parking duration shall be from the time when the aircraft wheel chocks are closed to the time when they are withdrawn from the aircraft wheels.

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Article 13. Passenger stairs service charges

1. Applied to: Carriers using such services at domestic airports/aerodromes.

2. Service price brackets:

a) Price bracket applying to the international flight:

Unit: USD/time

Duration

Service price bracket

Min

Max

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- The first 2 hours

85

120

- Every 30 minutes later (USD/30 minutes)

28

40

2/ Aircraft having from 240 seats or over

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- The first 2 hours

125

200

- Every 30 minutes later (USD/30 minutes)

35

50

b) Price bracket applying to the domestic flight:

Unit: VND/time

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Service price bracket

Min

Max

1/ Aircraft having under 240 seats

- The first 2 hours

735,000

1,050,000

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280,000

400,000

2/ Aircraft having from 240 seats or over

- The first 2 hours

1,120,000

1,600,000

- Every 30 minutes later (VND/30 minutes)

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600,000

c) For the combined domestic and international flight: 65% of the charges applying to the international flight.

Article 14. Check-in counter service charges

1. Applied to: Carriers and ground handling service providers using such services at domestic airports/aerodromes.

2. Check-in counter service charges shall be calculated monthly or per flight depending on the passenger’s options.

a) For international flights at group A and group B airports:

No.

Check-in counter services

Unit

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Min

Max

1

Monthly rent

USD/counter/month

2,240

3,200

2

Rent per flight

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20

29

b) For domestic flights at group A and group B airports:

No.

Check-in counter services

Unit

Service price bracket

Min

Max

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Monthly rent

VND/counter/month

27,000,000

38,000,000

2

Rent per flight

VND/counter/flight

170,000

240,000

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3. d) The price brackets applying other counters including the boarding counter, service desk and transit counter shall be collected by 20% of the charges corresponding to the check-in counter applying to group A and group B airports.

4. Counter services include:

a) Appropriate premises to allocate the counter;

b) Counter;

c) Computers and relevant equipment (excluding dedicated computer software);

d) Counter electronic screen;

dd) Baggage carousel at the counter;

e) Electricity and water;

g) Relevant costs of repair and management.

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6. Where the check-in counter is used for both the international flight and the domestic flight, the monthly counter rent shall be the average monthly rent applying to the international flight and the domestic flight.

Article 15. Baggage carousel service charges

1. Applied to: Organizations and individuals using baggage carousels at airports/aerodromes without automatic baggage handling service.

2. Service price brackets:

a) For international flights:

Unit: USD/time

Designed capacity of the aircraft

Service price bracket

Min

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...

Aircraft having under 40 seats

0

8

Aircraft having 40 - 100 seats

0

15

Aircraft having 100 - 240 seats

0

25

...

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0

42

b) For domestic flights:

Unit: VND/time

Designed capacity of the aircraft

Service price bracket

Min

Max

Aircraft having under 40 seats

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...

84,000

Aircraft having 40 - 100 seats

0

154,000

Aircraft having 100 - 240 seats

0

252,000

Aircraft having over 240 seats

0

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Article 16. Price brackets of automatic baggage handling service (automatic baggage classification service)

1. Applied to: Organizations and individuals using automatic baggage classification carousels at domestic airports/aerodromes.

2. Service price brackets:

a) Charges for international flights in group A and group B airports:

Unit: USD/flight

Designed capacity of the aircraft

Service price bracket

Min

Max

...

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...

0

15

Aircraft having 100 - 240 seats

0

25

Aircraft having 241 - 300 seats

0

30

Aircraft having 301 - 400 seats

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40

Aircraft having over 400 seats

0

45

b) Charges for domestic flights in group A and group B airports:

Unit: VND/flight

Designed capacity of the aircraft

Service price bracket

Min

...

...

...

Aircraft having under 100 seats

0

150,000

Aircraft having 100 - 240 seats

0

250,000

Aircraft having 241 - 300 seats

0

320,000

...

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...

0

400,000

Aircraft having over 400 seats

0

490,000

c) The price bracket applying to the domestic flight at group C airport shall be collected by 70% of the charges applying to group A and group B airports.

Article 17. Price brackets of lump-sum ground handling services at group C airports

1. Applied to: Domestic carriers using such services at domestic airports/aerodromes.

2. Service price brackets:

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No.

MTOW

Service price bracket

Min

Max

1

Under 20 tonnes

1,400,000

2,400,000

...

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...

From 20 tonnes to under 50 tonnes

2,100,000

3,600,000

3

From 50 tonnes to under 100 tonnes

2,800,000

4,800,000

4

From 100 tonnes or over

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...

6,000,000

3. Requirements: The above-mentioned charges include the following services:

a) Takeoff/landing service charges (accounting for 20% of the lump-sum ground handling service charges); aircraft marshalling charges (if any);

b) Technical ground service on the basis of satisfying the minimum requirements of the flight and actual capacity of each airport;

c) Using vehicles of the terminal directly serving the flight and the carrier’s representative office rent (excluding car parking lot);

d) Free of charge apron for the first time of parking.