Ministry of Transport: There are 3 options for ceiling and floor prices for airline tickets

The Civil Aviation Authority is being assigned to study three options for airfare pricing, including the possibility of keeping or removing the floor price.

The above information was given by Deputy Minister of Transport - Nguyen Hong Truong when talking to the press on the afternoon of April 5 about the airfare framework being developed and consulted by the Civil Aviation Authority. Specifically, the leader of the Ministrysaid there are 3 options being considered: One is to keep it as it is (floor price 0 VND, with ceiling price). Two is to increase the floor price above 0 VND, removing the ceiling. Three is to remove both the floor price and the ceiling price.

However, this person affirmed that no matter which option is chosen, the interests of the people will be put first.not the interests of any airline. The Ministry's leaders pledged to provide appropriate mechanisms to ensure competition and operations of airlines, helping to improve service quality, reduce prices... according to the Government's direction.

"The state does not protect any airline, including Vietnam Airlines. The airlines have been equitized, so investors also need transparency," said Mr. Nguyen Hong Truong.

The proposed domestic airfare framework proposed by airlines is causing mixed opinions.

Sharing more about this, Director of the Civil Aviation Authority - Lai Xuan Thanh reaffirmed that the recent proposal on ceiling and floor prices was not from the state agency, but from the airlines. The research on ceiling and floor prices will be based on the aviation law system, the Price Ordinance, the Competition Law and the state's macro-regulation. Along with that, the industry's characteristics, with reference to international economics to harmonize the interests of the state, businesses and society...

Mr. Thanh also said that currently the ticket price framework has been included in the Aviation Law, the National Assembly still decides on the ceiling price to regulate prices, although many opinions say that the current economic conditions should not apply a ceiling price.

"Although the economic market is free, the state still has the right to fight against unfair competition and price dumping. The assessment of which solution to apply will be based on the legal basis and whether the state needs to intervene to regulate prices. The Civil Aviation Authority will listen to social criticism," said Mr. Lai Xuan Thanh.

In March, Vietnam Airlines and Jetstar Pacific sent a document to the Ministry of Transport with comments on the airfare framework. Vietnam Airlines proposed that the lowest (floor) economy class fare for a domestic flight be 1.54 million VND, and the highest (ceiling) be 4.2 million VND. Jetstar Pacific also proposed applying a floor price of 0.6 to 1.2 million VND depending on the flight route.

On the contrary, Vietjet Air disagrees that the regulation of domestic airfare floor prices in any form is not in accordance with the provisions of the Competition Law 2014. Moreover, the regulation of floor prices for passenger transport services is no longer popular in the world.

According to VNE