Mr. Trinh Xuan An: Need to be transparent about input costs of airline ticket prices

Delegate Trinh Xuan An said that the high price of airline tickets is not necessarily due to fuel or the difference in supply and demand, but rather due to the unreasonable calculation of input costs by businesses.

At the question-and-answer session on March 18, Mr. Trinh Xuan An, a full-time member of the National Defense and Security Committee, acknowledged that price management for some items such as airline tickets and electricity is "having many problems".

According to him, price management has a complete legal framework, but the current paradox is that airfares are increasing while state-owned enterprises are reporting losses. The same thing happens with electricity prices.

"The increase in ticket prices is not necessarily due to fuel or supply and demand. Currently, Vietnam Airlines ' costs are too high, directly affecting prices, so input costs need to be transparent," he said.

The specialized member of the National Defense and Security Committee requested the Ministry of Finance to review, inspect, and check the price calculation, ensuring transparency of input costs and benefits for businesses and people.

Standing member of the National Defense and Security Committee Trinh Xuan An questioned on the morning of March 18. Photo: National Assembly Media — Mr. Trinh Xuan An, member of the National Defense and Security Committee, questioned on the morning of March 18. Photo: *National Assembly Media*

Sharing the same view, Mr. Pham Quang Huan, Chairman of the Board of Directors of HALCOM Vietnam Joint Stock Company, also said that the high ticket prices and losses of airlines are not satisfactory.

"It is not always possible to achieve high revenue by increasing ticket prices. We must find the optimal point between supply and demand. Tickets may be cheap but if the number of sales increases, the revenue will still be high," Mr. Huan said, and asked the Minister of Finance to come up with a suitable solution.

From March 1, the ceiling price of domestic air tickets for flights of 500 km or more will increase by 50,000-250,000 VND. For example, flights of 1,280 km or more will have a ceiling price of 4 million VND, an increase of 250,000 VND compared to before. With this pressure, the "base price" of the route from Ho Chi Minh City to Dien Bien can be as high as 8 million VND round trip, higher than the price of a tour from Ho Chi Minh City to Thailand.

Explaining, Finance Minister Ho Duc Phoc said that airfares are being operated within the price frame issued by the Ministry of Transport, and "have not exceeded the frame."

Currently, some countries have removed the ceiling price of aircraft so that businesses can decide for themselves according to market supply and demand. However, the Price Law still stipulates the ceiling price for tickets, and businesses are operating in accordance with the regulations, so they have not violated the law on prices.

Finance Minister Ho Duc Phoc answered questions on the morning of March 18. Photo: National Assembly Media — Finance Minister Ho Duc Phoc answered questions on the morning of March 18. Photo: *National Assembly Media*

The Finance Minister also reiterated the difficulties facing aviation due to the Covid-19 pandemic, which has caused the suspension of domestic and international flights. Recently, the industry has been affected by geopolitical conflicts and economic downturns, which have reduced the number of tourists from some markets, such as Russia and Japan, to Vietnam.

"Bamboo has cut many routes, Vietjet is also facing difficulties. Vietnam Airlines has accumulated losses of up to 37,000 billion, and the highest profit in any year is only 3,000 billion VND," said Mr. Phoc.

According to the Minister, to reduce input costs, restructure the flight service system, management and cost reduction are issues that private enterprises are most concerned about. Regarding Vietnam Airlines, the State Capital Management Committee at Enterprises and the Ministry of Transport are also very concerned.

For its part, the Ministry of Finance has asked businesses to streamline staff, improve quality, and ensure business efficiency.

According to VnExpress in February, many domestic routes were in a state of shortage of tickets, with prices increasing. Since mid-March, domestic ticket prices have cooled down. One of the reasons for the tension in ticket prices is the lack of aircraft due to problems related to the engines used on the A321. This has caused the supply capacity of Vietnamese airlines to decrease sharply this year and 2025.

Son Ha

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