Removing the ceiling price on air tickets will make it difficult for the poor to access aviation services.

On June 18, the National Assembly Standing Committee sent to the delegates a report on receiving, explaining, and revising the draft Law on Prices (amended), which is expected to be passed this afternoon, June 19.

The report of the National Assembly Standing Committee devoted a large part of its space to explaining the issue of maintaining ceiling prices for domestic air tickets, which is of concern to many delegates.

Among them, there are opinions suggesting that the regulation on price frames should be removed and this item should be implemented completely according to market mechanisms.

Increase social costs, increase state budget expenditure

Bỏ giá trần vé máy bay người nghèo sẽ khó tiếp cận dịch vụ hàng không - Ảnh 1. — The National Assembly Standing Committee believes that maintaining the ceiling price of air tickets as a regulatory tool of the State is necessary.

According to the National Assembly Standing Committee, in the current context, the competitiveness of the aviation market is still limited, and efforts must be made to promote the development of synchronous and modern modes of transport. In particular, when the high-speed North-South railway has not yet been deployed and put into operation, the State still needs tools to manage domestic aviation service prices to contribute to stabilizing the market.

In the long term, when all types of transportation develop synchronously, there will be many options for people to calculate the price regulations for domestic air passenger transport services appropriately.

The National Assembly Standing Committee affirmed that the regulation of price ceilings is completely consistent with Resolution 11 of the 12th Party Central Committee. Accordingly, a socialist-oriented market economy is an economy that operates according to market rules and is managed by the State.

The National Assembly Standing Committee also emphasized that the regulation of price ceilings is essentially a tool for state management of prices, ensuring the State's responsibility in stabilizing the market; it is not an integration of social policies as stated by the Aviation Association.

In addition, the regulation of price ceilings still ensures the initiative of enterprises. According to the Standing Committee of the National Assembly, currently, airlines still have full authority to decide on service prices, including airfares; only economy class airfares have the right to decide on specific prices on the basis of not exceeding the price ceiling.

Therefore, according to the National Assembly Standing Committee, if there is no price ceiling, it means that the State has abandoned the price regulation tool. Airlines can completely raise airfares to high levels for economy class tickets, especially during holidays, Tet, and tourist seasons when travel demand increases, affecting people, especially those with low incomes who have difficulty accessing aviation services; increasing social costs.

According to the National Assembly Standing Committee, this also increases state budget expenditure because currently many state agencies have to spend a large amount of budget every year on purchasing air tickets to serve their work needs. In fact, there are times (such as the recent April 30 - May 1) when airlines have simultaneously increased airfares, causing negative impacts on tourism activities and people's psychology.

The Ministry of Transport may adjust the ceiling price when necessary.

The National Assembly Standing Committee also said that removing the price ceiling is a very big issue, a change in an important policy and according to regulations, the impact must be carefully assessed. While the Government has not submitted and does not have an impact assessment report, there is currently not enough basis for amendment, which could cause consequences for society and the economy, the report stated.

Bỏ giá trần vé máy bay người nghèo sẽ khó tiếp cận dịch vụ hàng không - Ảnh 2. — The National Assembly will vote to pass the revised Price Law early this afternoon, June 19.

In particular, the regulation of price ceilings in the draft law, in addition to being the opinion of the majority of delegates, also comes from the request of the state management agency in the field of civil aviation.

Specifically, based on the assessment of practices over the past years, when summarizing the Civil Aviation Law, in the Summary Report and Evaluation of the Implementation of the Civil Aviation Law, the Ministry of Transport assessed and proposed to maintain the price ceiling regulation.

Another reason, according to the National Assembly Standing Committee, is that the price ceiling regulation has sufficient legal basis according to the Competition Law and the Price Law. Although the market is no longer monopolistic as before because there are 6 airlines operating domestic routes, in reality, the majority of the market share is still held by 3 major airlines: Vietnam Airlines with about 35%, Vietjet Air with about 40%, Bamboo Airways with about 16%.

Accordingly, Vietnam Airlines and Vietjet Air are both dominant enterprises and the group of 3 enterprises including Bamboo Airways is the group with dominant market share in domestic aviation services (accounting for 91% of market share). Therefore, according to the Competition Law, this market has limited competition and requires State control. Thus, the State's regulation of price ceilings is completely consistent with the statutory criteria.

The current price framework still creates opportunities to diversify service types; ensures attractiveness; meets the choice of high-end services of customers in different segments.

According to the report, the price ceiling is not fixed. If necessary, the Government (here, the Ministry of Transport) can set the price ceiling at a reasonable level, suitable to the socio-economic conditions at each stage and time, ensuring the harmony of interests between people and businesses. Therefore, if the price ceiling is found to be inappropriate, airlines have the right to request the Government to promptly adjust it, but it does not mean that the law must be amended.

From the above analysis, the Standing Committee of the National Assembly requests the National Assembly to allow only regulating price ceilings for passenger transport services by air.

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