From 1 July 2019, airlines in Vietnam must comply with the regulations on the service price framework for passenger services on domestic routes according to Circular No. 17/2019/TT-BGTVT dated 03 May 2019 of the Ministry of Transport on the issuance of the price framework for passenger transport services on domestic air routes (“Circular 17”). Before Circular 17, the Ministry of Transport had not yet issued a specific price framework for airlines to comply with, even though this content had been stipulated in Vietnam’s Civil Aviation Law 2006 (as amended, supplemented in 2014).

Specifically, Circular 17 regulates the price framework for economy passenger services as follows:

The maximum price aforementioned includes all passenger charges payable for 01 ticket, except for the following: (i) Value-added tax; (ii) Proceeds for enterprises providing passenger terminal services and security services, including: passenger service prices, passenger security and luggage security prices; (iii) Service charges for additional items. Service prices for additional items are determined by airlines based on balancing the airline’s ability and market demand.

Circular 17 also regulates that airlines are responsible for declaring specific prices with the Civil Aviation Authority of Vietnam (“CAAV”) and publicizing prices in accordance with Circular No. 36/2015/TT-BGTVT dated 24 July 2015 of the Minister of Ministry of Transport on management of domestic air transport services prices and aviation specialized service prices (as amended, supplemented by Circular No. 07/2017/TT-BGTVT dated 14 March 2017).

Furthermore, it should be noted that in the case of airlines opening new, unpublished routes within the groups of flight ranges announced by the CAAV, the airline is responsible for notifying the CAAV for consideration and supplementing new flight routes before declaring prices.


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