Airline service fees reduced by half for next six months
Fees for takeoff and landing and aircraft operating services for domestic flights will continue to be cut by 50 percent for the next six months to support airlines affected by the COVID-19 pandemic, according to a Transport Ministry circular.
HCMCity (VNA) 🔯— Fees for takeoff and landing andaircraft operating services for domestic flights will continue to be cut by 50percent for the next six months to support airlines affected by the COVID-19pandemic, according to a Transport Ministry circular.
The Minister of Transport hasapproved Circular 19, which regulates the fees of takeoff and landing andaircraft operating services for domestic flights, including specialisedaviation services, at airports across Vietnam, forthe next six months, from October through March. The fees for airline servicefees such as aircraft takeoff and landing service and other flight operationservices have already been reduced by 50 percent since the beginningof March, under a Government resolution on supporting enterprisesaffected by the pandemic. The Airports Corporation of Vietnam (ACV) had reduced airline servicefees from March through August to support airlines suffering from theimpact of the outbreak. ACV reduced fees for a range ofairline services at airports, including service fees for aircraft navigation(cut by 50 percent); and pipe ladder services, carousel rentals, automaticbaggage handling, check-in counters and ground services (by 10 percent). In addition, ACV, whichoperates more than 20 airports across the country, waived office rental feesfor airlines that have stopped flying, and reduced fees by 30 percent forairlines that are still operating flights. ACV has also waived fees forsome specialised aviation services. Earlier this year when thepandemic broke out, the Ministry of Transport asked the Ministry of Planningand Investment to consult with the Prime Minister about the proposedreduction. The Ministry ofTransport also asked the Government to assign the Ministry of Finance tooversee exemptions of import tax and environmental protection tax onaircraft fuel from March to August. The pandemic has severelyaffected revenues of the national flag carrier Vietnam Airlines and ACV. Vietnam Airlines reported 6trillion VND (257.1 million USD) in second-quarter revenue, down nearly 70percent from the previous quarter, as a result of a month-long socialdistancing order in April and the ongoing suspension of international flights. The national flag carriersuffered quarterly losses of 4.03 trillion VND, raising the total loss in the first half of the yearto more than 6.64 trillion VND. In mid-July, it estimated thatlosses would reach 13 trillion VND thisyear. Meanwhile, ACV recorded post-taxlosses of over 365 billion VND in thesecond quarter as its revenues plunged 76.6 percent from the same period lastyear to over 1.04 trillion VND. The airport operator projectedthat the number of air passengers would fall by 41 percent year-on-year to 69.2million this year, while the volume of cargo going through 21 airportsacross the country would fall by 13 percent to 1.34 million tonnes./.
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