The Ministry of Transport will keep the ceiling rates for airfares unchanged despite proposals from airlines to increase the rate.

The ceiling rates for airfares would be kept unchanged. — Photo thuonggiaonline.vn

Ceiling rates for airfares unchanged

25/10/2018

The Ministry of Transport will keep the ceiling rates for airfares unchanged despite proposals from airlines to increase the rate.

SR Vietnam | Content Marketing & Business Solutions

The ministry on Monday asked relevant agencies to contribute their opinions on the draft circular on price of air transportation service on domestic flights.

Accordingly, the ceiling rates for airfares for domestic routes would be maintained as regulated since August 2015.

Specifically, the basic domestic economy airfares sold in Viet Nam remain at the maximum level of five groups as follows:

Routes for socio-economic development, which are less than 500km long, fly to remote and mountainous island-bound areas and only one airline operates have a maximum rate of VND1.6 million per one way ticket. Other routes under 500km have a maximum price of VND1.7 million per one way ticket.

The routes of 500km to under 850km have maximum ticket price of VND2.2 million per one way ticket. Meanwhile, the route of 850km to under 1,000km have maximum ticket price of VND2.79 million per one way ticket.

The distance of 1,000km to under 1,280km have a maximum fare of VND3.2 million per one way ticket. The flight distance of 1,280km upward, the maximum ticket price is VND3.75 million per one way ticket.

The above mentioned maximum service charge is inclusive of all passenger charges payable for an air ticket, excluding value added tax; charges collected from enterprises providing passenger terminal and security services, including: passenger service charge, passenger and baggage security price; receipts for additional services provided by airlines which passengers have the option of using or not using.

Earlier, to stabilise airfares, the Civil Aviation Authority of Viet Nam (CAAV) proposed to halt the price scheme adjustment until 2019.

According to the CAAV’s calculation in August, due to increase of Jet A1 fuel prices and USD/VND exchange rate, the average cost per flight increased about 17 per cent compared with August 2015 (when the CAAV issued Official Letter No 5010/CHK-TC promulgating the ceiling rate for airfares).

Meanwhile, the maximum rate for Vietnamese airlines is 76-79 per cent compared to the current ceiling price, depending on routes. Therefore, from July to August, airlines have proposed adjusting the price to suit the actual situation.

Jetstar Pacific proposed a hike of 25 per cent on fare ceiling while Vietjet Air and Vietnam Airlines proposed suitable prices but not indicating a specific fare.

However, following the Government’s instruction on curbing inflation, the CAAV proposed the Ministry of Transport not increase the ceiling rate for airfares. — VNS

Source: Bizhub.vn

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