Draft circular proposes 50% discount on takeoff and landing fees for airlines at Long Thành International Airport for 24 months

Vietnam’s Civil Aviation Authority proposes several price-incentive policies at new airports. The draft Circular seeks to codify government policy promptly and ensure compliance with the Civil Aviation Law and the Price Law, while addressing practical obstacles and completing the regulatory framework to ensure uniform implementation. Under the proposal, airlines operating international scheduled flights to Long Thành International Airport and maintaining continuous operations for at least 12 months will be charged 50% of the standard takeoff and landing service charges, as regulated by the Ministry of Construction. The incentive will last 24 months from the start of operations. For airlines operating regular flights at other new airports in Vietnam (excluding Long Thành) and maintaining continuous operations for at least 12 months, they will also receive a 50% price discount on takeoff and landing services for 24 months from the airport's entry into service. The Civil Aviation Authority says the draft aims to institutionalize the policy and ensure conformity with the Civil Aviation Law and the Price Law, while addressing issues that arise in practice and improving the regulatory framework for uniform implementation. Building on Circular 44/2024/TT-BGTVT, the draft adds new provisions including price incentives at new airports. Specifically, for airlines operating international flights to Long Thành and maintaining continuous operations for at least 12 months (not including airlines already operating at Tan Son Nhat before Long Thành begins), the price will be 50% of the takeoff/landing service charges. The incentive lasts 24 months from the start of operations. For airlines operating regular flights at other new airports, similarly, a 50% discount on takeoff and landing fees will apply for 24 months from the airport's operational start. The Civil Aviation Authority says the draft aims to attract airlines to participate in operations and to balance interests among service providers and users. To ensure balanced benefits between service providers and users, the Authority requests the Ministry of Construction to solicit broad feedback from relevant agencies, including investors in new airports such as Quảng Trị and Gia Bình. In addition, the draft proposes removing several services from the list of services priced by the State, including civilian aviation security services (to be priced via fees), land lease at airports, basic essential airport services, and concessions for maintenance services on aircraft. Conversely, the draft adds to the State-priced category activities related to the concession for maintenance of aircraft, engines, and related equipment within Vietnam. The draft also adjusts terminology for several services to align with the new law and repeals rules on how passenger service and aviation security fees are collected, ensuring alignment with reorganised ministry responsibilities. Notably, the draft clarifies price provisions for training flights and for cases where aircraft must land at an alternative location due to force majeure.