The Civil Aviation Authority of Vietnam proposes to increase the ceiling of airfares
According to reports of airlines, fuel costs currently account for about 30%-42% of total flight costs of airlines.
According to reports of airlines, currently, fuel costs account for about 30%-42% of total flight costs – Photo: Duong Ngoc
In the document to comment on the draft report to the Prime Minister on the impact of increasing fuel prices on the prices of transportation services in all fields, the Department said that in the last period of March, 2022, when the price increase If crude oil shows signs of slowing down, the price of Jet A1 continues to increase. According to IATA statistical data on April 1, 2022, the price of Jet A1 fuel in Asia is up to 132.63 USD/barrel, the average price of Jet A1 in 2022 is forecasted to be 121.9 USD/barrel.
In order to fundamentally solve the impact of Jet A1 price fluctuations on airlines, the Civil Aviation Administration of Vietnam proposed the Ministry of Transport to consider a plan to increase the maximum price of passenger transport services on routes. inland in Circular 17/2019/TT-BGTVT.
In the period when the maximum price has not been adjusted, it takes time to carry out the processes of developing legal documents (Circular amending, supplementing or replacing Circular No. 17/2019/TT- BGTVT), in the immediate future, because the price of passenger transport services on domestic routes is implemented according to the flexible fare mechanism, airlines can still actively adjust the prices and ticket sales rates accordingly. corresponding to each price level to minimize the cost impact of fuel price fluctuations.
With aviation activities, domestic passenger transportation service prices are being implemented according to a flexible pricing mechanism, with prices ranging from low to high depending on market conditions, flight time, ticket booking time, etc. ticket conditions … to meet the maximum travel needs of passengers.
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