THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No: 818-TTg
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Hanoi, December 13,
1995
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DECISION
ON THE MANAGEMENT OF AIR FARES OF THE VIETNAM CIVIL AVIATION
THE PRIME MINISTER
Pursuant
to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Law on the Vietnam Civil Aviation in 1991 and the Law on
Amendments and Supplements to a Number of Articles of the Law on the Vietnam
Civil Aviation in 1995;
At the proposal of the Head of the Vietnam Civil Aviation Department and the
chairman of the Government Pricing Commission,
DECIDES:
Article
1.- This Decision provides for the unified
State management of the air fares including the passenger fare and the cost of
transportation of goods, postal mail and parcels on international and domestic
flights, the prices for the hiring of flights in service of the national
economy as well as special flights.
The
setting of air fares shall have to meet the development requirements of the
aviation service and comply with the socio-economic policies of the Party and
the State, with the international treaties which Vietnam has signed, ensure the
harmonious combination of the interests of the air transport enterprises and
the interests of the passengers, and also ensure the discharge of obligations
toward the State budget.
Article
2.- Principles for setting the air fares:
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2. The
air fares on domestic air routes applicable to foreign citizens or overseas
Vietnamese shall be set on the basis of the international air transportation
fares, more particularly the fares applied in the neighboring regions. The
fares shall be set in Vietnam Dong.
3. The
air transportation fares on domestic flights applicable to Vietnamese citizens
must assure the compensation for the average cost of air transportation on
domestic flights, taking into consideration the compensation between the fares
applied to different categories of passengers. It shall be made to suit the
capability of payment of Vietnamese passengers, taking into consideration the
reasonable ratio to the transportation by other means. It must ensure the
necessary profits for the air transport enterprises in order to invest in
enlarged reproduction and the discharge of obligations toward the State budget.
The fares shall be set in Vietnam Dong.
4. The
fares for the chartered flights in service of the national economy and the
special flights shall be made to compensate for the expenditures and to ensure
against losses to each service flight.
Article
3.- Tasks and competence of various
levels, services and business units in the management of the air transportation
fees
1. The
Prime Minister shall:
a/
Decide the policies and undertakings and principles for setting the air fare
rates on international and domestic flights.
b/
Decide the signing of, or empower the concerned ministries and services to
negotiate and sign, agreements under the multilateral or bilateral
international treaties and agreements on air transportation fares.
c/
Empower the Head of the Vietnam Civil Aviation Department to set the maximum
fare applicable to Vietnamese passengers on the Hanoi - Ho chi Minh City air
route.
2.
Tasks and competence of the Vietnam Civil Aviation Department (hereunder
referred to as Aviation Department).
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b/ To
draw up projects on policies, principles and modalities for the management of
air fares to submit to the Prime Minister and at the same time to guide and
direct the airlines to observe the policies and air fare rates set by the
competent authorities.
c/ On
the basis of the rates of air fares set in the international treaties which
Vietnam has signed and the fare rate agreed between Vietnam and other
countries, the Aviation Department shall ratify the passenger fares and the
cargo fares on international air routes at the proposal of the airlines, and
guide these airlines in the implementation of the fare rates already ratified
d/ To
be empowered by the Prime Minister to decide the maximum air fare rates
mentioned in Point c, Item 1 of Article 3 of this Decision after consulting
with the Government Pricing Commission.
e/ To
ratify the air fare rates derived from the maximum air fare mentioned in Point
c, Item 1 of Article 3 proposed by the airlines and guide the airlines in the
implementation of the fare rates already ratified.
f/ To
set the air fare rates for passengers who are foreigners or overseas Vietnamese
on the domestic flights.
g/ To
agree with the General Post Office on the maximum air fares for the printed
matters and postal mail transported by air. The transportation fares for goods
of the postal service shall comply with the contract between the business
enterprises under the General Post Office and the airlines.
3.
Tasks and competence of the Government Pricing Commission:
a/ To
evaluate the projects of the Aviation Department concerning the undertakings
and policies and principles for setting the air fare rates and submit them to
the Prime Minister; to discuss and agree with the Aviation Department on the
plan for deciding or readjusting the maximum air fare applicable to Vietnamese
passengers on domestic flights between Hanoi and Ho Chi Minh City. In case of
disagreement it shall submit the plan to the Prime Minister for decision.
b/ To
set the rates for chartered flights in service of the national economy and the
special flights in case the expenditures for the chartered flights shall be
taken from the State budget after discussion with the Ministry of Finance.
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4.
Tasks and powers of the air transportation enterprises (hereunder referred to
as Airlines).
a/ To
observe the policies and airfare rates set by the State and the implementation
guidances of the Aviation Department and the specialized managerial agencies.
To abide by the regime of periodical reporting on the situation and the air
fare rates already set under its jurisdiction to the higher managerial agencies
and the specialized managerial agencies.
b/ On
the basis of the principles laid down in Item 1, Item 2 of Article 2, to set a
concrete table of air fare rates on the different air routes, and report them
to the Aviation Department for approval. With the accreditation of the Aviation
Department it shall set the concrete air fare rates when there is a fluctuation
on the density of passengers and the density of flights with a view to
attracting more passengers and making the most of the transportation capacity
and achieving the maximal turnover.
c/ On
the basis of the principles laid down in Item 3, Article 2 and the maximum air
fare rates applicable to Vietnamese passengers on the Hanoi - Ho Chi Minh City
route, to design a concrete fare rates table on the other domestic routes and
submit it to the Aviation Department for approval.
d/ To
set the rates for the air transportation of goods on domestic flights in its
reasonable relation with the fares on other means of transport.
e/ To
sign contracts on air fares concerning postal mail and parcels with business
units under the General Post Office.
f/ To
post up at the air ticket sales points the rates of air fares for passengers
and goods already approved.
The
Aviation Department shall work out the regulation on the relation between it
and the airlines in the management of air fare rates in order to concretize
Point b, Point c of Item 4 of this Article.
Article
4.- The Head of the Aviation Department
shall provide for concrete guidance for the implementation of this Decision.
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All
earlier regulations related to air fares which are contrary to this Decision
are now annulled.
Article
6.- The Ministers, the Heads of the
ministerial-level agencies, the Heads of the agencies attached to the
Government, the Presidents of the People's Committees of the provinces and
cities directly under the Central Government shall have to implement this
Decision.
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Phan Van Khai