Increase ceiling price of domestic air tickets

The Ministry of Transport has just issued Circular No. 34/2023 amending and supplementing a number of articles of Circular No. 17/2019 on the price framework for passenger transport services on domestic routes (airfare ceiling), effective from March 1, 2024.

Airfare caps will increase from March 1, 2024.

Accordingly, the circular amends the price framework for basic economy class passenger transportation services. For routes with a distance of less than 500 km, the price ceiling is 1.6 million VND/ticket/one-way for routes contributing to socio-economic development and 1.7 million VND/ticket/one-way for other routes under 500 km.

The remaining flight routes will see price increases ranging from 50,000 to 250,000 VND per ticket per way compared to the previous regulations, depending on the length of each route.

Amidst fluctuating fuel prices and exchange rates, airlines are facing significant challenges as revenue falls short of expenses, and the recovery of production and business operations is encountering numerous obstacles.

Specifically, for routes between 500 km and under 850 km, the maximum price is 2.25 million VND per ticket per way.

For routes with a distance between 850 km and less than 1,000 km, the maximum ticket price is 2.89 million VND/ticket/one-way.

Flights between 1,000 km and under 1,280 km have a price ceiling of 3.4 million VND per ticket per way.

Flights with a distance of 1,280 km or more, such as Hanoi - Phu Quoc, cost 4 million VND per ticket per way.

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 (including passenger service fees and fees for ensuring passenger and baggage security; and service fees for additional items).

Previously, the Ministry of Transport stated that the proposed increase in domestic airfares was due to changes in the factors that determine ticket prices, especially rising fuel prices and exchange rates.

The Vietnam Civil Aviation Authority has also received feedback from Vietnam Airlines, Vietjet, Pacific Airlines, and Bamboo Airways regarding an increase in domestic airfares, as the airfare ceiling has remained unchanged since 2015. This ceiling is considered no longer appropriate for the current domestic flight situation.

However, in reality, domestic airfares are quite high, leading many consumers to choose to travel to other countries in the region instead of domestic destinations due to the exorbitant cost of airfare.

Source link: https://thanhnien.vn/tang-gia-tran-ve-may-bay-noi-dia-185231204181545159.htm