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Fuel company will not separate from Vietnam Airlines
The Ministry of Industry and Trade’s Competition Council has overturned an April decision to separate Vietnam Air Petrol Company from Vietnam Airlines, its parent company.
The decision was made at a June 26 appeal hearing after the council had ruled in favor of the separation last April, Thoi Bao Kinh Te Saigon Online reported Tuesday.
The council said the new decision aimed to protect the national flag carrier.
The separation had been proposed by foreign-invested Jetstar Pacific Airlines, which runs multiple flight routes in Vietnam. The proposal came after the fuel supplier, known as Vinapco, had cut off fuel supplies to the budget airline on April 1 last year following an argument over prices.
While rejecting the separation proposal, the council said it was still upholding a fine of VND3.37 billion (US$192,000) against Vinapco for the unilateral fuel cut.
The council said Vietnam Airlines’ jet-fuel supply company had abused its monopolistic power and flouted the Law on Competition.
The fine is equivalent to 0.05 percent of Vinapco’s revenue in 2007, the newspaper said, adding the maximum fine could be up to 10 percent of the revenue for such violation.
To strengthen competition and weaken Vinapco’s monopoly, the council has suggested that the government license PetroVietnam Jet Fuel Joint-Stock Company, an affiliate of Petrolimex, as soon as possible to allow it to supply fuel to domestic and foreign airlines.
thanhnien
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