Aircrafts at Nội Bài International Airport. — VNA/VNS Photo

A range of domestic air transport services has received price incentives under a new circular from the Ministry of Transport aimed at supporting airlines.

The Ministry of Transport recently issued a circular that sets forth mechanisms and policies to manage the prices of domestic air transportation services and specialised aviation services.

Circular No. 44/2024/TT-BGTVT will take effect on January 1, 2025.

Airlines with monthly invoices that separate international from domestic flight services, specifically for aircraft take-off, landing and flight management, will be eligible for discounts on the cost of operations.

Specifically, services provided for international flights with listed prices ranging from over US$125,000 to under $250,000 will be reduced by 1.5 per cent; listed prices from $250,000 to under $750,000 will receive a reduction of 2.5 per cent; from $750,000 to under $1.5 million, 3.5 per cent; and prices from $1.5 million or more receive a 5 per cent discount.

For services provided on domestic flights, invoices with a total value between VNĐ5 billion (about $200,000) and under VNĐ10 billion ($393,000) will be discounted by 1.5 per cent, those between VNĐ10 billion and under VNĐ15 billion will be offered a 2.5 discount, between VNĐ15 billion and under VNĐ30 billion a 3.5 per cent discount, and VNĐ30 billion or more a 5 per cent discount.

Pilot training flights for non-commercial operations in Việt Nam will not be charged for flight operation management and aircraft take-off and landing services for the first 36 months from the date the training facility conducts its first pilot training flight.

The circular also stipulates that Vietnamese airlines participating in the air transport market for the first time will get a price equal to 50 per cent of the price of aircraft takeoff and landing services and flight operations services set by the Ministry of Transport.

The applicable period is 36 months from the date the airlines start taking advantage of the new rules.

Certain new regular international flight routes at Nội Bài, Tân Sơn Nhất and Đà Nẵng international airports will get a price of 90 per cent of the cost of aircraft take-off and landing services and departure and arrival flight operations services set by the Ministry of Transport. The applicable period is 12 months from the date the airlines start using these discounts.

At other airports, the cost will be 50 per cent of the price for aircraft takeoff and landing services and departure and arrival flight operations services, as determined by the Ministry of Transport. The applicable period is 24 months from the date of commencement of exploitation.

In case an airline is subject to multiple preferential levels, the highest preferential level will be applied. Organisations and individuals providing services proactively apply preferential prices according to regulations.

The new regulations also adjust the classification of airport groups.

Specifically, airports are divided into two groups: group A serves socio-economic purposes, including airports at Côn Đảo, Điện Biên, Cà Mau and Rạch Giá.

Group B includes airports that do not belong to the aforementioned group of airports serving socio-economic purposes. — VNS