After the proposal to loosen the ceiling price, will airfares increase?

The leader of the Civil Aviation Administration of Vietnam said that in the face of the fact that the price of Jet A1 fuel increased by 130 USD per barrel (nearly double in 2021), the Civil Aviation Administration of Vietnam proposed to “relax” the ceiling price. Airfares to remove a part of the difficulties for Vietnamese airlines that are suffering huge losses.

Faced with concerns that the increase in airfares will directly affect consumers, the leader of the Civil Aviation Administration of Vietnam said that the increase in airfare prices does not affect inflation because the proposed price does not increase. much higher than the current ceiling price (average increase of 3.7%), equivalent to the ceiling applied in 2015. The Civil Aviation Authority of Vietnam has also calculated the ceiling price to protect the interests of passengers and ensure macro policy of the state to fight inflation and increase prices.

Concerning that the “relaxing” of the ceiling price will create conditions for airlines to increase ticket prices during the upcoming peak season April 30 to May 1, the leader of the Civil Aviation Administration of Vietnam said that, during the peak season, The average ticket price cannot reach the ceiling, only reaching 60% of this figure. Airlines have many fare ranges, no airline only sells tickets at a ceiling price. Therefore, in order to access reasonable prices, passengers should buy tickets early, and if they decide to buy close to the departure date, the ticket price is very high.

According to aviation experts, domestic passenger transportation service prices are being implemented according to a flexible pricing mechanism. Adjusting the price bracket for domestic passenger transport services to the level as in 2014 does not mean that airlines simultaneously increase ticket prices.

On the contrary, the policy will create conditions for airlines to continue to implement a flexible fare policy, stretch the range between ticket prices, introduce more programs and appropriate pricing policies, and increase ticket prices. cheap to stimulate demand.

Dr. Le Dang Doanh, a senior economist, said that the ceiling price should be adjusted to suit the evolution of the petroleum market. As for the proposal to remove the ceiling on airfares, from a competitive perspective, whichever airline offers the best service at the best price, that airline will attract customers. Therefore, it may be advocated to consider abolishing price ceilings at an appropriate time when there are sufficient elements of fair competition.

Looking at another angle, Associate Professor-Dr. Ngo Tri Long, an economist, said that a ceiling price is still needed, in the context that the aviation market has no real competition but there are still businesses holding a dominant position. .

However, from the perspective of consumers, Mrs. Dam Thi Them, from Thanh Xuan district (Hanoi) shared: “One month’s regional minimum wage may not be enough to buy an air ticket. Traveling by air in Vietnam is still something of a luxury and not for the masses”.

Meanwhile, Mr. Vu Tien Trung, from Dong Da district (Hanoi) stated that the management agency should let the airlines decide the price and the consumers will decide which airline has a reasonable price. with their finances. Firms that are suitable will exist, if they are not suitable, they will be eliminated.

However, some passengers said that the new opening after the pandemic should have been offered at a reasonable price for people to travel through, thereby stimulating tourism and business. After all, the ceiling is increased, who is interested while the people’s economy is still difficult after just going through 2 years of the pandemic.

Concerning that removing the ceiling price of air tickets will cause airlines to simultaneously increase their prices, the leaders of airlines said that the market is very competitive, customers compare and choose services that are suitable for the price, so airlines will not be able to comfortably increase ticket prices. Regulatory agencies also have their own regulations to examine and protect consumer interests.

Illustration – Photo: Dan Tri.

According to the recommendation of the Civil Aviation Authority of Vietnam, which has just sent to the Ministry of Transport about adjusting the price of domestic passenger transport services, the price of air tickets will increase from 2.2 to 6.6% depending on the routes. fly.

Specifically, for the distance from 500 to 850km, the current ceiling price is 2.2 million, the new proposed level is 2.25 million VND (up 2.2%); distance from 850 to 1,000km, the current price is 2.79 million, the proposed increase is 2.89 million (up 3.5%); distance from 1,000 to 1,280km, the ceiling price is currently 3.2 million, the proposed level is 3.4 million (up 6.2%); distance from 1,280km or more, the ceiling price is 3.75 million VND, the proposed level increases to 4 million VND (up 6.6%).

Currently, the ceiling price of air tickets has been applied since 2015. In September 2015, when the price of Jet A1 fuel in Asia decreased, the Civil Aviation Authority of Vietnam adjusted to reduce the ceiling of airfares by about 3.5%. .

A leader of the Civil Aviation Authority of Vietnam said that during the peak holiday season from April 30 to May 1, the number of passengers traveling by air is expected to increase by 25-30% compared to weekdays, reaching about 90-95% of the same period last year. last year. Airlines have planned to arrange nearly 1,000 flights during this peak occasion. The Civil Aviation Authority of Vietnam also monitors ticket sales daily, airlines will ensure to meet the needs of passengers.

A representative of Vietnam Airlines said that during the holiday period of April 30 to May 1, Vietnam Airlines Group provided nearly 450,000 seats in 7 days from April 28 to May 4. In which, Vietnam Airlines and Vasco operated over 2,000 flights with nearly 395,000 seats, up 10% over the same period in 2019. Meanwhile, Pacific Airlines provided over 270 flights, equivalent to nearly 51,000 seats.

Domestic flight routes focusing on increasing load are attracting tourists, connecting the two big cities of Hanoi and Ho Chi Minh City with famous tourist destinations such as Da Nang, Quy Nhon, Da Lat, Nha Trang, and Phu. Quoc, Con Dao…

With Bamboo Airways, the airline said it plans to increase the frequency of flights on key routes such as Hanoi – Da Nang, Hanoi – Quy Nhon, Hanoi – Cam Ranh and Hanoi – Phu Quoc, Hanoi and Ho Chi Minh City. Ho Chi Minh – Con Dao. The airline actively arranges late-night flights to maximize travel demand on this occasion.

On the occasion of the 30/4-1/5 holiday, the airline increased the frequency of flights connecting to the domestic flight network. Specifically, in the period from April 28 to May 3, the airline plans to increase the frequency of evening flights on key routes such as Hanoi – Da Nang, Hanoi – Quy Nhon, Hanoi – Cam Ranh and Hanoi. Hanoi – Phu Quoc.

Representatives of a number of airlines warn passengers when booking flights in the peak season to be careful when buying tickets through an intermediary channel.

A representative of the Civil Aviation Authority of Vietnam also advised passengers to buy plane tickets through the box office or official agents of the airline.

For online ticket purchase, passengers need to pay attention to the following requirements during the payment process: Make sure the card is eligible for online payment, the card is registered for online banking service, the card is eligible for online payment. still valid, full payment limit.

Passengers should visit websites or call the airline’s passenger support centers to find out information related to buying air tickets online when in need of the service. Air transport.

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