No increase in domestic airfares

TTO DNUM_CDZBAZCABI 07:01

Although airlines have proposed to increase the ceiling price of domestic air tickets, the Ministry of Transport has kept it the same to stabilize prices.

According to the draft circular regulating the price range for passenger transport services on domestic flights that is being consulted by the Ministry of Transport, the ceiling price range for air tickets remains the same as stipulated since August 2015.

Specifically, the basic economy class domestic airfares sold within Vietnam remain at the maximum level for the following 5 groups of routes:

- Flights with a distance of less than 500km belonging to the group of socio-economic development flights (flights to remote areas, border islands and operated by only one airline) are 1.6 million VND/ticket/way. Other flight groups under 500km are 1.7 million VND/ticket/way.

- Flights with distance from 500km to under 850km have maximum ticket price of 2.2 million VND/ticket/way.

- Flights with distance from 850km to under 1,000km have maximum ticket price of 2.79 million VND/ticket/way.

- Flights with distance from 1,000km to under 1,280km have maximum ticket price of 3.2 million VND/ticket/way.

- Flights with distance from 1,280km or more have maximum ticket price of 3.75 million VND/ticket/way.

The above maximum service price includes all costs that passengers must pay for an air ticket, except for the following fees: value added tax; fees collected on behalf of enterprises providing passenger terminal services and security services including: passenger service fees, passenger and baggage security fees; fees for additional services provided by the airline that passengers have the right to choose to use or not.

Bảng  trần giá vé máy bay Bộ GTVT đề xuất áp dụng cho năm 2019.
Airfare ceiling table proposed by the Ministry of Transport for application in 2019.

Previously, according to calculations by the Civil Aviation Authority of Vietnam in August 2018, due to the increase in Jet A1 aircraft fuel prices in Asia and the USD/VND exchange rate, the average cost of a flight increased by about 17% compared to August 2015 (when the Civil Aviation Authority issued Official Dispatch No. 5010/CHK-TC promulgating the ceiling price framework for air tickets, which is currently being applied).

Meanwhile, the maximum declared ticket prices of Vietnamese airlines account for 76% to 99% of the ceiling price. Therefore, from July to August 2018, airlines have proposed adjusting prices to suit the actual situation.

Jetstar Pacific specifically proposed to increase the maximum rate by 25% compared to the current regulation. Meanwhile, Vietjet Air and Vietnam Airlines proposed to adjust the price appropriately but did not give a specific price.

Hiện mức kê khai giá tối đa của hãng hàng không chiếm từ 76-79% so với mức giá trần hiện hành (tùy theo từng đường bay).
Currently, the maximum declared price of airlines is 76-79% of the current ceiling price (depending on each flight route).
However, implementing the direction of the Government and the Ministry of Transport on price stabilization, the Civil Aviation Authority proposed that the Ministry of Transport maintain the current price ceiling.

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No increase in domestic airfares
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