Airline service fees reduced for next six months

Monday, Mar 23, 2020 08:15

Tan Son Nhat International Airport in HCM City, the country’s largest and busiest airport. — Photo courtesy of the Airport Corporation of Viet Nam

The Airports Corporation of Viet Nam (ACV) has announced it will reduce airline service fees for six months from March to August to support airlines suffering from the COVID-19 pandemic.

On Friday, ACV reduced fees for a range of airline services at airports, including service fees for aircraft navigation (cut by 50 per cent); and pipe ladder services, carousel rentals, automatic baggage handling, check-in counters and ground services (by 10 per cent).

In addition, ACV, which operates more than 20 airports across the country, will waive office rental fees for airlines that have stopped flying, and reduce fees by 30 per cent fees for airlines that are still operating flights.

ACV will also waive fees for some specialised aviation services.

Last week, the Ministry of Transport asked the Ministry of Planning and Investment to report to the Prime Minister about the proposed reduction of 50 per cent for fees for takeoff, and landing and aircraft operating services for domestic flights.

The Ministry of Transport has also asked the Government to assign the Ministry of Finance to oversee an exemption of import tax and environmental protection tax on aircraft fuel for three months.

Domestic airlines have suspended many routes to China, South Korea, Europe, and Southeast Asia.

National flag carrier Vietnam Airlines has suspended all its international routes until April 30.

Vietnam Airlines had earlier suspended flights between Viet Nam and China, Hong Kong, Macao, South Korea, France, Russia, Malaysia and Taiwan.

According to ACV, this year the passenger volume through Vietnamese airports is expected to fall by 40 per cent compared to last year. International visitors will decrease by 70 per cent.

ACV expects profit this year will decrease by VND10 trillion (US$430.2 million) due to the effect of the pandemic. — VNS

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