Before proposing to remove the ceiling price for domestic air transport services of enterprises, the Ministry of Finance said that this decision was decided by the Ministry of Transport.

The Ministry of Finance has just issued Official Letter No. 168 to the Civil Aviation Administration of Vietnam, the Registry of Vietnam, the Department of Finance, the Department of Transport (Ministry of Transport) regarding the price of domestic air transportation services.

Response document to the aviation enterprise's proposal about removing the domestic ceiling price bracket for air transport services.

The Ministry of Finance said that the function of state management of aviation is regulated by the Ministry of Transport. The Department of Price Management (Ministry of Finance) requested the Department of Transport, the Civil Aviation Administration of Vietnam and the Department of Finance to report specific comments and suggestions related to the price of domestic air transportation services proposed by airline enterprises to the Ministry of Transport.

Explaining this, the Ministry of Finance said that the Law amending and supplementing a number of articles of the Law on Civil Aviation of Vietnam stipulates: “Airlines decide the price of domestic air transportation services within the price limit set by The Ministry of Transport and declare prices to the Ministry of Transport”.

According to the Ministry of Finance, the agency performing the task of state management specialized in civil aviation under the Ministry of Transport is the aviation authority.

“Based on the above regulations, the Ministry of Transport is responsible to the Government for performing the state management of civil aviation and air transportation service prices” the Ministry of Finance said.
Previously, when formulating the Revised price Law, the Price Management Department (Ministry of Finance) received a recommendation related to the price of domestic air transportation services. Specifically, the Vietnam Aviation Business Association, Vietnam Airlines Corporation (Vietnam Airlines), and Tre Viet Aviation Joint Stock Company (Bamboo Airways) proposed to remove the ceiling price limit regulation for domestic services and air transport.

These enterprises also proposed to regulate the price reduction of transport services by air without being considered as a violation to competition law and anti-dumping law on imported goods. At the meeting at the end of April 2023 with the Ministry of Finance, aviation enterprises also continued to make recommendations on this issue.

Source: VTCNews