Airlines simultaneously reduce ticket prices

Vietnam Airlines reduced prices from 9-80%, VietJet Air and Jetstar Pacific Airlines reduced prices from 9-100% of the regulated ceiling price.

Mr. Tran Bao Ngoc, Director of the Department of Transport (Ministry of Transport) said that up to this point, all Vietnamese airlines have reduced ticket prices according to fuel prices.

Specifically, Vietnam Airlines reduced prices from 9-80% of the regulated ceiling price, VietJet Air and Jetstar Pacific Airlines reduced prices from 9-100% of the regulated ceiling price (there were promotional periods, ticket prices were reduced to only 0 VND).

Mr. Tran Bao Ngoc also said that through the management of airline fares, in 2015, the promotional fare structure from 0 VND of VietJet Air increased 3.87 times, the average fare decreased 8% compared to 2014.This year, airlines are committed to continuing to build and sell many cheap tickets and offer more promotional programs.

Regarding the way airlines manage ticket prices, Mr. Tran Bao Ngoc said that according to the characteristics of ticket sales in the aviation industry, tickets are never sold at one price but at many different price ranges.

Airlines simultaneously reduce ticket prices according to fuel prices. (Photo: KT)

For example, on the same plane, airlines have divided the price into different ranges based on supply and demand. The ticket price depends on the seat location and the time the passenger buys the ticket (the earlier the ticket is purchased, the cheaper the ticket price. Conversely, the closer the passenger buys the ticket to the flight time, the more expensive the ticket price is)...

Mr. Tran Bao Ngoc affirmed that many people mistakenly think that promotional programs implemented by airlines mean reduced ticket prices, which is incorrect.

The aviation industry differs from the road industry in that the selling price cannot be higher than the ceiling price set by the State, and in 2015, the State adjusted that ceiling to match the sharp drop in fuel prices. The Ministry of Transport coordinated with the Ministry of Finance to direct the Civil Aviation Authority of Vietnam to implement the price ceiling reduction.

“Currently, all airlines, in addition to selling cheap tickets, preferential tickets according to promotional programs and selling more tickets in low fare ranges, domestic airlines are recorded to have sold tickets lower than the ceiling price regulated by the State. The Ministry of Transport affirms that passengers are completely assured about the management of ticket prices of airlines in accordance with fuel prices,” said Mr. Tran Bao Ngoc.

Regarding the basis for setting the ceiling price for airlines, the head of the Department of Transport said that the ceiling price will be set up or down depending on fuel prices. Specifically, when there are fluctuations in fuel prices, the Ministry of Transport will coordinate with the Ministry of Finance to calculate and set the ceiling price for airlines./.

According to VOV