Proposed price bracket for franchising air services

DNHN - The Ministry of Transport is now drafting a Circular establishing a price range for franchising air services to perfect the system of legal documents governing aviation rates, thereby creating a legal corridor for enterprises to operate inside.

Accordingly, the following price bracket is proposed for franchising aviation services:

1. Franchise to operate international passenger terminals from 15-24%.

2. Franchise to operate terminals and warehouses from 1.5 to 4.5%.

3. Exploiting franchise for commercial ground technology from 1.5 to 4.5%.

4. Franchise operation, repair and maintenance of aviation vehicles and equipment in the area under the management of airport operators from 1-3%.

5. Franchise for aviation technical operations in the area under the management of airport operators from 1-3%.

6. The operator franchise provides airline meals from VND 75,000 – to VND 225,000/flight.

7. Concession of exploitation and supply of aviation petroleum from 1.2 to 3.6 USD/ton. 

The above franchise prices do not include value-added tax.

The franchise prices as a percentage specified in items 1 to 5 above are calculated on the turnover (excluding value-added tax) of the enterprises participating in providing the respective services.

The franchise prices specified in Section 6 above, exclusive of value-added tax, are calculated based on the volume of flights using the airline catering service of the franchisee.

The franchise prices specified in Section 7 above, excluding value-added tax, are calculated based on the amount of aviation petrol and oil supplied by the franchisee.

The income or production used to determine the mining franchise price excludes revenue or output from companies providing services to their businesses and subsidiaries provided by the parent company with 100% charter capital providing services to the parent company. 

 PV