Circular No. 17/2019/TT-BGTVT dated May 03, 2019 of the Ministry of Transport on the price frame for passenger transportation in the local routes

CIRCULAR

On the price frame for passenger transportation in the local routes

Pursuant to the Law on Vietnam Civil Aviation dated June 29, 2006 and the Law on amending and supplementing anumber of articles of the Vietnam Civil Aviation Law;

Pursuant to the Law on Price dated June 20, 2012;

Pursuant to the Decree No. 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding a number of articles of the Law on Price and the Decree No. 149/2016/ND-CP on amending and supplementing a number or articles of the Decree No. 177/2013/ND-CP;

Pursuant to the Decree No. 12/2017/ND-CP dated February 10, 2017 of the Government prescribing the functions, tasks, rights and obligations and organizational structure of the Ministry of Transport;

At the proposal of the Director of the Transportation Department and the Head of Civil Aviation Authority of Vietnam;

The Minister of Transport issues the Circular on price frame for passenger transportation in the local routes,

Article 1. Scope of adjustment and subject of application

1. This Circular prescribes the price frame for passenger transportation in local routes.

2. This Circular is applicable to the organizations and individual supplying, using and managing the price of passenger transportation in the local routes.

Article 2. Term interpretation

Terms are constructed as follows:

1. The price of passenger transportation in basic economy class is the price that the passenger must pay for using the service in economy class section that satisfy all the basic demands of the passenger on the flight from on-land to in-air service.

3. Flight distance is the distance defined in accordance with the popular light distance including the distance when taking the height, the rough flight before join in the airway, in the airway, lower the altitude and hover before landing.

4. Flights of economic and social development have flight distance under 500 km, to remote areas; islands and borders and are operated by only one airline.

Article 3. General regulations on price frame of passenger transportation.

1. Principles in defining the price frame of passenger transportation prescribed at the Article 3 of the Circular No. 36/2015/TT-BGTVT dated July 24, 2015 by the Minister of Transport on management of domestic air transport freights and aviation service prices.

2. The price frame for passenger transportation in the local routes is from VND 0 (zero) to the maximum level of each flight distance group. The airlines shall decide the price range of passenger transportation services in the price frame to ensure the compliance with the actual production cost of each flight.

Article 4. Price frame of passenger transportation

1. The price frame for passenger transportation in economy class section

2. The maximum price for the service is prescribed at the clause 1 of this Article included all the charges that passenger must pay for 01 ticket, except for:

a) VAT tax;

b) Revenues from enterprises providing the services of passenger terminal and security assurances such as: prices for passenger services; security assurance and packages;

c) Service prices for added section.

3. Price for additional services decided by airlines on the basis of balancing airline’s abilities to supply services and market demands.

Article 5. Responsibilities of the Civil Aviation Department of Vietnam

1. Notify the list of domestic routes in accordance with groups of flight distance.

2. Investigate, supervise and report to the Ministry of Transport on the implementation of the price frame in accordance with the airline’s regulations on prices.

Article 6. Airline’s responsibilities

1. The price decided by the airlines on air routes or group of air routes based on many level of prices for each route and the policy on regular discount for residents and soldiers permanently living in remote areas, borders and islands.

2. To declare the specific level of price to the Civil Aviation Department of Vietnam and public the prices in accordance with theCircular No. 36/2015/TT-BGTVT dated July 24, 2015 by the Minister of Transport on management of domestic air transport freights and aviation service prices and the Circular No. 07/2017/TT-BGTVT dated March 14, 2017 on amending and supplementing a number of articles of the Circular No. 36/2015/TT-BGTVT dated July 24, 2015 by the Minister of Transport on management of domestic air transport freights and aviation service prices.

3. In the case that airlines open new flight routes which have not been public in the group of flight distance informed by the Civil Aviation of Vietnam, the airline is responsible for reporting to the Civil Aviation of Vietnam for consideration and having decision to supplement the group of popular flight distance before making price declaration for the Civil Aviation of Vietnam.

Article 7. Implementation effect and organization

1. This Circular takes effect on July 01, 2019.

2. In the case that referred legal documents are amended, supplemented or replace in this Circular, the amended, supplemented and replaced documents shall be applicable.

3. Chief Officer, Chief Inspector, Directors and Heads of Civil Aviation Department of Vietnam, managers of related agencies, organizations and individual shall implement this

For the Minister

The Deputy Minister

Le Dinh Tho