Officially increase domestic airfare ceiling from tomorrow (March 1)

Notably, flights with a distance of less than 500km have a ceiling price of VND 1,600,000/ticket/way for socio -economic development routes and VND 1,700,000/ticket/way for other routes.

The price frame for economy class passenger transportation services on domestic flights will be adjusted from tomorrow (March 1). Illustrative photo.

The remaining flight groups will have their prices increased by 50,000 - 250,000 VND/ticket/way compared to the old regulations, depending on the length of each flight.

For flights from 500km to under 850km, the ceiling price is 2,250,000 VND/ticket/way (old price is 2,200,000 VND/ticket/way).

For flights with a distance of 850km to less than 1,000km, the maximum ticket price is 2,890,000 VND/ticket/way (old price is 2,790,000 VND/ticket/way).

Flights from 1,000km to under 1,280km have a ceiling price of 3,400,000 VND/ticket/way (old price was 3,200,000 VND/ticket/way). Flights with a distance of 1,280km or more are 4,000,000 VND/ticket/way (old price was 3,750,000 VND/ticket/way).

According to Circular No. 34/2023/TT-BGTVT, the maximum price includes all costs that passengers must pay for an air ticket, excluding value added tax and fees collected on behalf of the airport.

This price includes passenger service price and passenger and baggage security price; service price with additional items.

According to the Civil Aviation Authority of Vietnam, airfares (both international and domestic) are currently implemented according to a flexible fare mechanism with many price ranges depending on market conditions (supply - demand), ticket conditions, ticket issuance time, etc.

For domestic flights, to protect consumer rights, the Ministry of Transport has issued Circular No. 17/2019/TT-BGTVT on the price framework for passenger transport on domestic flights and Circular No. 34/2023/TT-BGTVT dated November 30, 2023 amending and supplementing a number of articles of Circular No. 17/2019/TT-BGTVT of the Minister of Transport promulgating the price framework for passenger transport services on domestic flights.

Currently, Vietnamese airlines have built products and domestic airfares that are suitable to the needs of passengers and within the price range specified in the above Circulars.

Comparing domestic airfares with regional airlines, the fare calculated per kilometer in the domestic market of Vietnam according to the current regulated price range is still quite low compared to other countries in the region and the world .

For example, for the Hanoi - Ho Chi Minh City route, the highest price/km is only about 0.11 USD/km. Meanwhile, for the Bangkok - Chiang Mai route, the highest price/km of Thai Airways is 0.22 USD/km (twice as high as in Vietnam).

Air China's Beijing - Shanghai flight is 0.27 USD/km, Asiana Airlines' Pusan-Jeju flight is at 0.32 USD/km,...

Airfares also depend on the law of supply/demand. People's travel needs during Tet often increase and are concentrated on good flight days and times.

On very peak days, at good flight times, there is often high demand and seats are sold out earlier than on near-peak days or on early morning or late afternoon flights, and ticket prices will of course be higher.

In fact, air transport during Tet always has the unique characteristic of being crowded in one direction only, with few or even no passengers in the other direction.

Therefore, the ticket price applied at this time also partly helps airlines collect one-way fees, compensate for the round-trip flight but still not higher than the prescribed ceiling price.

Source congluan.vn

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