Proposal to increase ceiling ticket prices on domestic flights
A representative of the Civil Aviation Authority of Vietnam said that the Authority has officially proposed to the Ministry of Transport the following specific increases: for flights with a distance of less than 500 km, the proposed increase is 27%, for flights from 500 km to less than 850 km, the increase is 25%, for flights from 850 km to less than 1,280 km, the increase is 22%, and for flights over 1,280 km, the increase is 20%.
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It is estimated that currently, up to 71% of the costs of aviation businesses are paid in USD. For fuel, this figure accounts for about 36% of the costs of airlines.
On this basis, the representative of the Civil Aviation Authority said that the above increase was calculated mainly based on the fluctuations of exchange rates, fuel prices in the market in recent times and the prices of aircraft rental and pilot rental of enterprises. As for the adjustment of electricity prices and other input costs, airlines must balance and share with customers.
“In fact, the highest proposed increase for short-haul flights is also aimed at encouraging airlines to operate on these routes to better meet people's travel needs,” the representative added.
Talking to VnEconomy, Mr. Ta Huu Thanh, Deputy General Director of Jetstar Pacific, said that although the ceiling price is actually only applied during holidays and peak seasons, it also helps reduce the difficulties for airline operators in our country.
Previously, in a recent meeting with the Ministry of Transport, airline representatives proposed a ceiling increase for ticket prices on domestic routes of 20-50%.
After receiving the proposal from the Civil Aviation Authority, if it agrees with the proposed increases, the Ministry of Transport will forward it to the Ministry of Finance for consideration and final decision.
According to VnEconomy
