Kinh tế

Let market supply and demand determine airfares?

This is just a proposal, but because of the impact on consumers’ pockets, especially during the tourist season, it has received many comments.

The suggested increase is different for each flight segment. For example, a flight route of 1,000 – 1,280 km increased from 3.2 million VND to 3.4 million VND.

On popular routes such as Hanoi – Ho Chi Minh City, Hanoi – Phu Quoc, the maximum ceiling price will be 4 million VND, instead of 3,750,000 VND as at present. The price bracket adjustment plane ticket attributed to the sudden spike in fuel prices since the beginning of this year.

Let market supply and demand determine airfares?  - Photo 1.

Passengers check in at Noi Bai international airport. (Photo: employees)

“The current ceiling price of airfares has been in effect since 2015. At that time, the price of oil was more than 60 USD/barrel. Now there is a time when the price has doubled. Airlines also have to increase ticket prices to ensure enough transportation costs. action”, one net account commented.

“The price of everything is going up, if the ceiling is not lifted, airlines will be weaker because of the epidemic,” another account commented.

Concerned that the ceiling increase will make airfares increase sharply during the next holiday, some people think that, during peak times, the average fare cannot reach the ceiling. For example, the routes Hanoi – Con Dao, Phu Quoc have the highest economy ticket price of about 3.4 million VND one way for April 29 – May 2. This price is lower than the current ceiling price.

“In order to compete, airlines still have to offer reasonable prices for passengers,” one netizen commented.

“It’s best to buy tickets early, and when the date is close, the ticket price is very high,” another account said.

Currently, airfares are being made according to a flexible pricing mechanism. Airlines build and declare a range of fares with many prices from low to high. Many people think that the market should let supply and demand decide the price of air tickets.

“Applying such a ceiling price will no longer be competitive, causing damage to service users”, one account expressed.

“Let the airlines decide the price and the consumer decides which airline has the right price,” another user commented.

According to the Civil Aviation Administration of Vietnam, in May 2021, the General Statistics Office issued a document stating that bringing the ceiling price of domestic air tickets to the level of 2014 will contribute to the overall CPI increase of 0.003%. Therefore, this has almost no impact on the CPI this year.

In the context of rising fuel prices, this proposal is understandable. However, even though the proposal to raise the ceiling price is approved, airlines still have to compete with each other in terms of prices, incentives… and consumers will be the last to decide which airline has a reasonable price. best.

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