From July 1st, 2024, what are incentives of domestic air carriage and aviation service in Vietnam?
From July 1st, 2024, what are incentives of domestic air carriage and aviation service in Vietnam?
Issuance of the Circular 13/2024/TT-BGTVT on mechanisms and policies for management of domestic air carriage charges and aviation service charges in Vietnam
On May 15th, 2024, the Minister of Transport promulgates the Circular 13/2024/TT-BGTVT on mechanisms and policies for management of domestic air carriage charges and aviation service charges.
The Circular 13/2024/TT-BGTVT applies to organizations and individuals that provide, use and manage domestic air carriage charges and aviation service charges.
Domestic air carriage charges and aviation service charges shall be determined based on the rules and grounds specified in Article 22 of the Law on Prices in 2023.
From July 1st, 2024, what are incentives of domestic air carriage and aviation service in Vietnam? - image from internet
What are regulations on payment currencies for domestic air carriage and aviation service in Vietnam?
Pursuant to Article 3 of the Circular 13/2024/TT-BGTVT stipulating payment currencies for domestic air carriage and aviation service in Vietnam:
1. For domestic air carriage
Domestic air carriage charges within Vietnam’s territory are specified in Vietnamese Dong (VND). The quotation and payment of service charges are made in VND.
2. Aviation services
- Domestic flight service charges are specified in VND. The quotation and payment of service charges are made in VND.
- International flight service charges are specified in US dollars (USD). The quotation and payment of service charges are made in accordance with the law on foreign exchange.
3. For non-aviation services
- At domestic terminals and non-restricted areas of international terminals: Service charges are specified in VND. The quotation and payment of service charges are made in VND;
- Restricted areas of international terminals: service charges are specified in USD. The quotation and payment of service charges are made in accordance with the law on foreign exchange.
From July 1st, 2024, what are incentives of domestic air carriage and aviation service in Vietnam?
Pursuant to Article 4 of the Circular 13/2024/TT-BGTVT stipulating incentives of domestic air carriage and aviation service in Vietnam:
- Carriers that make full monthly payments for the following services on their invoices: aircraft take-off and landing, departure and arrival traffic control, will be entitled the following incentives:
For services provided for international flights
|
Service charges on payment invoices (USD) |
Discount (%) |
|
Over 125,000 USD to under 250,000 USD |
1.5% |
|
From 250,000 USD to under 750,000 USD |
2.5% |
|
From 750,000 USD to under 1,500,000 USD |
3.5% |
|
1,500,000 USD or more |
5% |
For services provided for domestic flights
|
Service charges on payment invoices (VND) |
Discount (%) |
|
Over 5 billion VND to under 10 billion VND |
1.5% |
|
From 10 billion VND to under 15 billion VND |
2.5% |
|
From 15 billion VND to under 30 billion VND |
3.5% |
|
30 billion VND or more |
5% |
Service charges will be calculated separately for each type of service provided for international and domestic flights. Calculation period: 1 month.
- For flight training and pilot training activities (not combined with commercial operations) in Vietnam: Training facilities will be exempt from air traffic control charges for departure, arrival, take-off, and landing for the first 36 months from the date of the first flight training or pilot training (not combined with commercial operations).
- Vietnamese airlines newly entering the air transport market will be granted a 50% discount on aircraft take-off and landing charges and air traffic control charges for departure and arrival, as regulated by the Ministry of Transport. This incentive will be applied for a period of 36 months from the date of commencement of operation.
- For airlines operating scheduled international flights to and from Vietnam, in cases where no other airline operates scheduled flights on that route for a period of at least 12 months:
+ At Noi Bai, Tan Son Nhat, Da Nang international airports: These airlines will be granted a 90% discount on aircraft take-off and landing charges and air traffic control charges for departure and arrival, as regulated by the Ministry of Transport. This incentive will be applied for a period of 12 months from the date of commencement of operation;
+ At other airports: These airlines will be granted a 50% discount on aircraft take-off and landing charges and air traffic control charges for departure and arrival, as regulated by the Ministry of Transport. This incentive will be applied for a period of 24 months from the date of commencement of operation.
Note: In cases where an airline is eligible for multiple incentives, the airline will be granted the most favorable incentive.
- Vietnamese airlines newly entering the air transport market (Clause 3 Article 4 of the Circular 13/2024/TT-BGTVT)
- Airlines operating scheduled international flights to and from Vietnam, in cases where no other airline operates scheduled flights on that route for a period of at least 12 months (Clause 4 Article 4 of the Circular 13/2024/TT-BGTVT)
Note: Circular 13/2024/TT-BGTVT takes effect from July 1st, 2024.
