Passengers at Noi Bai International Airport in Hanoi (Photo: VNA) Hanoi (VNA) - The Civil Aviation Authority of Vietnam has sent aproposal to the Ministry of Transport to raise several aviation service chargesin order to reduce peak-hour overloads and raise money for infrastructuredevelopment.
Under the proposal, take-off and landing service charges at major airports,including Noi Bai and Tan Son Nhat, would be raised by 15 percent during rushhours and reduced by 15 percent during off-peak hours.
If passed, this would be the first rate differentiation imposed in Vietnam onpeak and off-peak flights, which aims to make carriers adjust their schedules,especially of domestic flights, to prevent congestion during peak hours.
According to the proposal, rush hour overload at major airports was due to therapid increases in the number of domestic flights.
Statistics show that the number of take-offs and landings of domestic flightsin 2016 increased by 25 percent over the previous year and were 2.4 timeshigher than those of international flights.
The aviation authority pointed out that the service charges of domestic flightshad been kept stable since 2011 and were only equivalent to 46-67 percent ofthe ASEAN average, adding that increases were necessary to make up for growingmaintenance and repair costs and to have funds for new investments.
“The increases are necessary and reasonable in order to have funds forreinvestment in infrastructure development,” Lai Xuan Thanh, Director of theCivil Aviation Authority of Vietnam, was quoted as saying by local newspaper.
However, the authority would require carriers to maintain their ceiling flightticket prices.
Toease the impact on the operation of carriers, the take-off and landing servicecharges would be raised in two stages - 5 percent from July 1, 2017 and another10 percent from January 1, 2018.
LeManh Hung, General Director of the Airports Corporation of Vietnam (ACV) whichoperates 22 airports across the country, was quoted by the online newspapervnexpress.net as saying that the service charges for domestic flights must beincreased by 225 percent to reach the break-even point and 258 percent to havea profit of 10 percent.
According to Nguyen Thien Tong, former head of the HCM City University ofTechnology’s Department of Aviation, said raising rush hour charges would beefficient to draw passengers to off-peak flights due to lower fares.
The Civil Aviation Authority is also proposing ahike in security charges of 0.5 USD per passenger for international flights,and 18,181 VND (0.9 cents) per passenger for domestic flights - double thecurrent charge.
The aviation authority said that the security charges in Vietnam were stilllower than in other countries, such as 6 USD in Singapore, 6.5 USD in Myanmarand 3 USD in Cambodia.
A hike of 40,000 VND in passenger service charges is also being proposed,raising them to 90,909 VND for arrivals and departures at type A airports, and 72,727VND at type B airports. The increase is explained by the upgrading of manyairports and passenger service quality.
According to ACV’s estimates, if all proposals are approved, carriers wouldhave to pay an extra 143 billion VND per year, equivalent to 5,188 VND perpassenger (23 cents, accounting for 0.11 percent of the average airlinetickets). The change will be too minor for carriers to have to adjust theirfares, ACV said.-VNA
Under the proposal, take-off and landing service charges at major airports,including Noi Bai and Tan Son Nhat, would be raised by 15 percent during rushhours and reduced by 15 percent during off-peak hours.
If passed, this would be the first rate differentiation imposed in Vietnam onpeak and off-peak flights, which aims to make carriers adjust their schedules,especially of domestic flights, to prevent congestion during peak hours.
According to the proposal, rush hour overload at major airports was due to therapid increases in the number of domestic flights.
Statistics show that the number of take-offs and landings of domestic flightsin 2016 increased by 25 percent over the previous year and were 2.4 timeshigher than those of international flights.
The aviation authority pointed out that the service charges of domestic flightshad been kept stable since 2011 and were only equivalent to 46-67 percent ofthe ASEAN average, adding that increases were necessary to make up for growingmaintenance and repair costs and to have funds for new investments.
“The increases are necessary and reasonable in order to have funds forreinvestment in infrastructure development,” Lai Xuan Thanh, Director of theCivil Aviation Authority of Vietnam, was quoted as saying by local newspaper.
However, the authority would require carriers to maintain their ceiling flightticket prices.
Toease the impact on the operation of carriers, the take-off and landing servicecharges would be raised in two stages - 5 percent from July 1, 2017 and another10 percent from January 1, 2018.
LeManh Hung, General Director of the Airports Corporation of Vietnam (ACV) whichoperates 22 airports across the country, was quoted by the online newspapervnexpress.net as saying that the service charges for domestic flights must beincreased by 225 percent to reach the break-even point and 258 percent to havea profit of 10 percent.
According to Nguyen Thien Tong, former head of the HCM City University ofTechnology’s Department of Aviation, said raising rush hour charges would beefficient to draw passengers to off-peak flights due to lower fares.
The Civil Aviation Authority is also proposing ahike in security charges of 0.5 USD per passenger for international flights,and 18,181 VND (0.9 cents) per passenger for domestic flights - double thecurrent charge.
The aviation authority said that the security charges in Vietnam were stilllower than in other countries, such as 6 USD in Singapore, 6.5 USD in Myanmarand 3 USD in Cambodia.
A hike of 40,000 VND in passenger service charges is also being proposed,raising them to 90,909 VND for arrivals and departures at type A airports, and 72,727VND at type B airports. The increase is explained by the upgrading of manyairports and passenger service quality.
According to ACV’s estimates, if all proposals are approved, carriers wouldhave to pay an extra 143 billion VND per year, equivalent to 5,188 VND perpassenger (23 cents, accounting for 0.11 percent of the average airlinetickets). The change will be too minor for carriers to have to adjust theirfares, ACV said.-VNA
VNA
