A Vietjet aircraft parks at Cam Ranh International Airport. CAAV has proposed the Ministry of Transport reject attempts to raise international passenger service charges at Cam Ranh International Airport

CAAV noted in a report sent to the ministry that it lacked any legal basis to appraise the passenger service charges and prices of land for rent at the airport in Nha Trang City.

A representative of CAAV stated that the spending management and use and depreciation of fixed assets depend on project investment formats.

In addition, a report issued by the inspection team of the Ministry of Transport showed that the investment format of the Cam Ranh International Terminal project should be reviewed.

Further, the ministry has yet to provide detailed directives on the project investment format, while Cam Ranh International Terminal JSC has yet to provide an update on the total investment needed, financial solutions available and the period for recouping the investment in the project.

The company had earlier sent a proposal to raise international passenger service charges at the airport from US$14 per passenger to US$20, or from VND326,000 to VND466,000, equal to the charge imposed at Danang International Airport.

Cam Ranh Company pointed out that the firm had signed an agreement with the Airports Corporation of Vietnam (ACV) to run the Cam Ranh International Terminal at a cost of 12% of the total revenue calculated from the beginning of its operation.

Cam Ranh International Terminal, which received total funding of VND3.7 trillion, was put into service on June 30, 2018. Its capacity in the 1A phase is 2.5-4.5 million passengers per year. This will increase to 6-8 million passengers per year after all equipment is installed in the 1B phase.

Cam Ranh International Terminal JSC was established by shareholders, including ACV, Nasco Logistics, Vietjet Aviation Joint Stock Company and Imex Pan Pacific Co., Ltd. SGT