Vietnam News Network

A State-owned airplane petrol supplier was fined more than VND3 billion (US$168,000) for violating the nation’s Competition Law in an unprecedented trial on Tuesday.

The one-day hearing by the National Competition Council ruled that the Viet Nam Air Petrol Company (Vinapco), the sole supplier of petrol for airplanes in the country, was fined because it had violated two clauses of the Competition Law, one of them on business monopoly.

On April 1 last year, due to a dispute over pumping fees, Vinapco, a subsidiary of Vietnam Airlines Corp, unilaterally suspended fuel supply to Pacific Airlines, delaying four Pacific flights for two hours.

About 5,000 passengers on Pacific’s flights were affected by Vinapco’s fuel suspension before the Prime Minister told Vinapco to resume fuel supplies to the airline.

An official from the Ministry of Industry and Trade’s Competition Management Department said the fine was calculated based on the percentage of Vinapco’s turnover in 2007 and would be handed to State coffers.

The department also proposed that Vinapco be split from Vietnam Airlines and all monopolised services closely controlled.

Other enterprises should be licensed to join the air petrol market, the department said.

Vinapco has one month to lodge an appeal.