Assign the Ministry of Transport the authority to price aviation services

This morning (November 21), with 81.21% of delegates in favor, the National Assembly officially passed the Law amending and supplementing a number of articles of the Law on Civil Aviation of Vietnam.

Officially passed regulations on Aviation Authorities

Before voting to pass the entire draft law, the National Assembly voted to pass two contents, which are the regulations on aviation authorities (Clause 2a, Article 9) and the regulations on fees, charges, and prices of specialized aviation services (Article 11). The National Assembly agreed with both of these contents with a high percentage.

Previously, presenting the report explaining and accepting the revision of this draft Law, Chairman of the Law Committee Phan Trung Ly said that it is reasonable to stipulate that the agency performing the task of state management of the aviation sector under the Ministry of Transport is the Aviation Authority. Such a regulation, on the one hand, is to be consistent with the authority prescribed in the Law on Government Organization; on the other hand, it is to ensure stability, not having to amend the Law in case of changing the name of the agency performing the task of state management of the aviation sector.

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The draft also only stipulates the specific tasks and powers of the Aviation Authority, to ensure direction, management, and flexibility in handling situations that must be resolved promptly in civil aviation practice.

Meanwhile, regarding prices of specialized aviation services (Article 11), the Standing Committee of the National Assembly believes that, in order to overcome the situation of enterprises taking advantage of their monopoly position to raise service prices, especially for some essential non-aviation services, the draft Law has been revised in the direction of the State determining prices for aviation services and some essential non-aviation services.

Prices of other common services and goods are still regulated according to the market mechanism decided by enterprises but must be publicly listed; the State's management role is demonstrated through the inspection and supervision of enterprises' implementation. Thereby, protecting the legitimate rights and interests of consumers and enterprises.

Regarding the management of activities at airports, including the methods for enterprises to conduct non-aviation services at airports, the current Law on Civil Aviation of Vietnam (Article 55) has been stipulated; accordingly, the Government has stipulated the management and exploitation of airports.

However, based on the opinions of the National Assembly deputies and the content of the amendments to the Law on Civil Aviation of Vietnam this time, it is recommended that the Government review the current Decrees to make appropriate regulations, ensuring that enterprises are allowed to conduct business services at airports according to the principles of bidding and fair competition to implement equal rights in business activities.

Meanwhile, regarding the proposal to review aviation service prices to ensure consistency; specify fees, charges, and aviation-specific prices to avoid overlap, taking into account the opinions of the National Assembly Deputies, the Standing Committee of the National Assembly has reviewed and adjusted aviation service prices; specifically regulated fees and charges in the draft Law to ensure consistency of the legal system.

“The Standing Committee of the National Assembly finds that assigning the Ministry of Transport the authority to set prices for aviation services aims to create consistency in state management of this field. Therefore, the Standing Committee of the National Assembly proposes that the National Assembly retain this provision as in the draft Law; at the same time, the Ministry of Transport needs to have more effective measures to carry out this work according to the opinions of the National Assembly Deputies to overcome the current limitations and shortcomings.

Regarding the regulations on planning of airports (Article 56), the Standing Committee of the National Assembly believes that the current Law on Civil Aviation of Vietnam has regulations on principles of planning of airports (Clause 1, Article 56) and assigns the Prime Minister to approve the master plan for the development of the airport system and detailed planning of international airports (Clause 2, Article 56).

Accepting the opinions of the National Assembly Deputies, the Standing Committee of the National Assembly proposed that the National Assembly add the coordination responsibility of relevant agencies in planning airports and airfields in accordance with the law on construction (Clause 2, Article 56 of the draft Law).

For specialized airports, which are built mainly based on the needs of organizations and individuals to serve specific purposes such as hospitals, tourism, oil rigs, rescue, etc.; specialized airports can have runways, parking lots or simply be temporary landing sites for aircraft. The opening and closing of specialized airports changes frequently. Therefore, it is very difficult to have a general plan for the specialized airport system.

Ensuring flight safety and avoiding impacts on flight routes will be ensured through the issuance of certificates of airworthiness, aircraft operating qualifications, flight licenses and the decision to open and close specialized airports as stipulated in the Law.

Low-cost airline development policy

In response to the group of opinions suggesting the need for a policy to develop low-cost airlines, not to demolish old airports but to utilize these facilities for low-cost airlines, the Standing Committee of the National Assembly found that the provisions in the current Law on Civil Aviation of Vietnam already have policies for airlines to develop, including low-cost air transport. The use of airports for low-cost transport also depends on the planning of airports and the efficiency of investors; and the travel needs of passengers. On the other hand, the exclusive use of old airport and airport infrastructure for low-cost airlines is unlikely to reduce costs because of the separate costs for human resources and infrastructure rental at airports and airports.

Meanwhile, regarding the responsibilities and obligations of carriers (Articles 110, 145 and 165), there are opinions suggesting clearly defining the right of passengers to request compensation for damages and the competent authority to resolve cases of flight delays and cancellations not due to objective reasons.

Regarding this issue, the Standing Committee of the National Assembly believes that the current Law on Civil Aviation of Vietnam, Section 1, Chapter VII on the civil rights and responsibilities of carriers, specifically stipulates the rights of passengers, shippers, and consignees; civil responsibilities of carriers; and authority to resolve complaints and lawsuits. Therefore, the Standing Committee of the National Assembly proposes that the National Assembly keep this content as in the draft Law.

According to GTVT newspaper