Airport service rates stay the same, for now

16:52' 23/04/2008 (GMT+7)
VietNamNet Bridge – The plans by airports to raise airport fees have been facing strong opposition from airlines. As a result, airports have decided not to raise fees at this moment.
Monopoly exists, airport service fees gallop
The Central Region’s Airport Complex informed Vietnam Airlines and Pacific Airlines that it would apply new service fees as of April 1. Under the plan, nine services would have seen sharp increases of 2.5-10 times.
The fees for carrying passengers from landing areas to waiting rooms was expected to increase from VND450,000/trip to VND4.3mil, or by 9.5 times, while the fee for hiring luggage conveyor belt from 700,000/hour to VND1mil, and the fee for hiring a desk for check-in procedures from VND900,000 to VND5.8mil.
However, as airlines protested the new fee levels, Nguyen Van Lien, Deputy Chief Secretariat of the Central Region’s Airport Complex, said that the complex has temporarily shelved its plans to raise fees.
Lien said that airports will negotiate with clients and the agreements reached between the two sides will be submitted to the Civil Aviation Administration of Vietnam (CAAV) and the Ministry of Finance for final approval.
Nguyen Van Hong, Chief Accountant of the Northern Airport Complex, said that airports are intending to raise service fees they are providing for domestic and international airlines. However, Hong confirmed that the complex has just announced tentative increases; it has not applied new rates yet.
Hong said that airports cannot maintain the service fees which have been applied since 2000. Since that time, airfares have increased by many times (the airfare for Hanoi-Dien Bien flights has risen by 237%), while the prices of other commodities have also increased sharply (electricity by 200%, water 350-375%, and petrol 181%). Therefore, it would be fair to raise service fees.
He said that if airports maintain the current fee levels, they would incur heavy losses, while the state would also suffer as airports are all 100% state owned.
The fee increases will only make service fees equal for both domestic and international airlines. To date, the rates have been different, with domestic airlines enjoying preferences.
The discriminatory treatment proves to come contrary to WTO rules. In 2005, the government released Instruction No 22, stipulating that fees must be gradually adjusted to become equal for all airlines, no mater domestic or international.
However, Hong stressed that as per request of the government and the Ministry of Transport, airports will not apply the new rates until there are new rates agreed upon and approved by competent agencies.