VietNamNet Bridge – Airports Corporation of Vietnam (ACV) has proposed revising up airport fees on passengers of domestic flights to and from a number of airports, particularly new and just upgraded ones.

Illustrative image -- File photo

The operator of 22 operational airports in Vietnam has submitted the proposal to the Ministry of Transport. ACV said it will focus investments on airports with high passenger growth, including Tan Son Nhat in HCMC, Noi Bai in Hanoi, Cam Ranh in Khanh Hoa Province, Phu Quoc off mainland Kien Giang Province, Phu Bai in Thua Thien-Hue Province, Dong Hoi in Quang Binh Province, Con Dao off Ba Ria-Vung Tau Province and Phu Cat in Binh Dinh Province in 2016-2018.

The investment plan requires a total of over VND26.2 trillion (US$1.17 billion). Of the total, VND18.43 trillion will go to terminals and parking lots for aircraft, and the remainder to other facilities.

To ensure investment efficiency, ACV is seeking the ministry’s approval to adopt a roadmap to adjust up airport fees on passengers of domestic flights to narrow the deferential with charges for international flights by two to four times by 2020.

ACV calculated that investments in international airports are 20-30% higher than those in domestic ones, but airport charges on passengers using domestic services are 2.5 to eight times lower than those on international flights.

The corporation wants to raise service fees at Noi Bai, Danang, Tan Son Nhat, Cam Ranh, Phu Quoc, Vinh and Phu Bai airports in the initial years. If the ministry approves the proposal, airfares for domestic flights to and from the airports would certainly spike.

Currently, the Ministry of Finance allows the airport fee collection of VND40,000-70,000 per passenger for domestic flights, However, almost all airports apply the highest permissible charge of VND70,000 per passenger and a few airports such as Phu Cat and Tho Xuan in the central region collect VND60,000 per passenger.

The current charge is US$25 per passenger for international flights at Noi Bai compared to the lowest rate of US$13 per passenger and US$20 per passenger at Tan Son Nhat compared to the lowest fee of US$10 per passenger.

Besides, passengers have to pay VND10,000 per person for security screening for domestic flights and US$1.5 per person for international services.

Twenty-two airports in Vietnam, including nine international airports, can handle 80 million passengers a year.

SGT