Aviation sector firms’ complaints gain wings

The rapidly growing aviation sector is experiencing growing pains

Recently, domestic outfit Pacific Airlines and some other carriers submitted a proposal to the Civil Aviation Administration of Vietnam (CAAV) protesting the price of land services which they claim are “unreasonable”.
Service charges at Vietnam’s airports are under the management of northern, central and southern airports management agencies and state-owned Vietnam Airlines. Early this year, service fees at all northern, central and southern airports increased sharply. Customer transport charges at central airports have been increased nine-fold against last year.

A foreign airline representative said service fees at Vietnamese airports were higher than regional countries. The increase in service prices has pushed up airlines’ operating costs and the price of air tickets.
“The high operating costs will push up ticket prices that passengers have to pay. That will not encourage tourists to come to Vietnam and hinder the development of tourism and retail sectors,” said the official.

Late last month Vinapco, the sole fuel distributor for local aviation, stopped supplying fuel for Pacific Airlines, forcing this airline to stopped 30 flights. These flights could only resume after Minister of Transport Ho Nghia Dung asked Vinapco to resupply fuel.

Pacific Airlines complained that Vinapco had not been fair when selling fuel to Vietnam Airlines and other airlines. The price Vinapco applied for Vietnam Airlines, its mother company, is lower than other airlines.
There is still no information proving that Vinapco was wrong stopping supplying fuel, but the case has raised concern for other airlines that are buying fuel from Vinapco.

The Ministry of Finance (MoF) has asked Vinapco not to unilaterally stop fuel for airlines without permission of government authorities and adjust the selling price. The MoF and CAAV also reviewed the service fees at airports.