Proposal to increase ceiling price of domestic air tickets

The Ministry of Transport is seeking opinions on amending a number of articles of Circular No. 17/2019/TT-BGTVT on the price framework for passenger transport services on domestic flights. Notably, ticket prices for some routes are proposed to increase compared to current prices.

According to the Draft Circular, for flights under 500 km, the transportation service price remains the same as Circular No. 17/2019/TT-BGTVT. Specifically, the group of flights for socio -economic development still has a maximum price of 1.6 million VND/one-way ticket. The group of other flights under 500 km has a maximum price of 1.7 million VND/one-way ticket.

For flights from 500 km to under 850 km, the maximum suggested price is 2.25 million VND/one-way ticket. While according to current regulations, this figure is 2.2 million VND/ticket.

For flights from 850 km to under 1,000 km, the maximum suggested price is 2.89 million VND/ticket, 100,000 VND higher than current regulations.

For flight distances from 1,000 km to less than 1,280 km, the new Draft proposes a maximum price of VND3.4 million, VND200,000 higher than current regulations.

Finally, the proposed price of VND4 million is for flight distances of 1,280 km or more. This figure is VND250,000 higher than the current regulation.

Thus, the above increase will affect routes such as Hanoi - Ho Chi Minh City, Hanoi - Phu Quoc, Hanoi - Ca Mau..., the ceiling for routes under 500 km such as Ho Chi Minh City - Da Lat, Hanoi - Vinh remains the same.

It can be seen that the maximum service price includes all costs that passengers must pay for an airline ticket, excluding fees such as: value added tax; fees collected on behalf of businesses providing passenger terminal services as well as security services such as passenger service fees, security fees, and baggage fees.

The maximum service price does not include the service price for additional items. This price is decided by airlines based on the balance of the airline's service provision capacity and market demand.

Airlines regulate specific ticket prices on routes or groups of routes by diversifying ticket prices for each route and regularly implementing discount policies for compatriots and soldiers residing in remote, border, and island areas.

According to the Ministry of Transport, the ceiling price of air tickets has been kept stable since 2019. However, according to a report by the Civil Aviation Authority of Vietnam, the fuel cost of airlines in December 2022 increased by nearly 62.4% compared to December 2014 and increased by approximately 81% compared to September 2015. This index affected the total cost to increase by nearly 28% compared to December 2014 and 33.5% compared to September 2015.

Based on the impact of fuel costs, exchange rates and Government direction, the Ministry of Transport plans to adjust the price frame for air transport services with an average increase of 3.75% compared to the current price frame.

According to baotintuc.vn

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