Raise the ceiling to ensure competitive airfares?
Vietravel Airlines has just issued a statement expressing its opinion on the proposal to increase the ceiling price for some flights, which the Ministry of Transport is seeking opinions on to amend a number of articles of Circular No. 17/2019 on the price range for passenger transport services on domestic routes.
According to the proposal of the Ministry of Transport, the group of flights with a distance of less than 500 km will still maintain the current ceiling price of 1.6 million VND/one-way ticket for socio -economic development routes and 1.7 million VND/one-way ticket for other groups of flights under 500 km.
For the flight group from 500 km to under 850 km, the ceiling price increased by 50,000 VND/one-way ticket from 2.2 million to 2.25 million VND, equivalent to an increase of 2.27%. For the flight group from 850 km to under 1,000 km, the ceiling price increased from 2.79 million VND to 2.89 million VND/one-way ticket (equivalent to an increase of 3.58%).
Raising the ceiling, airfares can go up to 4 million VND/way
For flight distances from 1,000 km to less than 1,280 km, the Ministry of Transport proposed a maximum price of VND3.4 million/one-way ticket, VND200,000 higher than the current regulation (an increase of 6.25%). The last group - flight distances from 1,280 km or more - is proposed a price of VND4 million/one-way ticket, VND250,000 higher than the current regulation of VND3.75 million. This is also the group with the strongest price increase proposed, up to 6.67%.
Vietravel Airlines leaders assessed that this is one of the proposals that closely follows the actual situation of the industry when input costs have fluctuated compared to the ceiling price frame issued 8 years ago. Based on the operating results of Vietravel Airlines in recent years, it shows that the average ticket price of the flights operated by the airline is always below the ceiling price frame according to Circular 17 issued since 2015.
"Increasing the ceiling price range will allow airlines to have a wider margin for operating ticket prices, helping airlines be more proactive in flexibly balancing between ensuring competitive ticket prices while still meeting fluctuating input costs as in the past" - the leader of Vietnam's "youngest" airline commented.
In fact, airfare is a "difficult problem" for the tourism industry.
Airfare prices increase or decrease?
Notably, Vietravel Airlines cited data: In the early stages of the 2023 summer peak, Vietravel Airlines recorded that airfares connecting Ho Chi Minh City and Hanoi to major tourist cities such as Phu Quoc/Quy Nhon/Da Nang decreased by more than 18% compared to the same period last year. At the same time, it affirmed that information about high summer airfares given by some units is not close to the actual market situation and is not the general picture of the entire flight network.
Previously, many families planning to take their children on summer vacation had to complain about the high price of airfares. For example, buying a ticket to Phu Quoc in mid-May, Ms. Ngoc Thuy (living in Hanoi) had to pay more than 6.5 million VND/round-trip ticket from Vietnam Airlines, the total cost for a family of 4 was nearly 28 million VND for airfares.
At that time, families who chose to fly from Hanoi to Nha Trang also had to pay exorbitant ticket prices. The departure date was June 16 and the return date was June 20. The cheapest ticket of Vietjet increased to more than 3.7 million VND/round trip ticket; Pacific Airlines continued to be on par with the price of about 4.5 million VND for the two-way trip. Vietnam Airlines flights increased to about 5.5 million VND.
There are very few flights from Hanoi to Quy Nhon in mid-July. Bamboo Airways tickets range from 4.6 to 5.3 million VND/round trip; Vietnam Airlines from 5.5 to 5.8 million VND. From Hanoi to Con Dao from now until the end of August, there are only Bamboo Airways flights every day with prices ranging from 4.5 to 5.6 million VND/round trip.
In fact, records from travel companies also show that the situation of many families canceling their holiday and summer travel plans or switching to international travel instead of domestic travel due to high airfares is becoming more and more common. If issued, the new price ceiling regulation will have a strong impact on the aviation and tourism market. The "hottest" tourist routes such as Hanoi - Ho Chi Minh City, Hanoi - Phu Quoc... are all in the group of routes with the strongest increase, which means that the cost of tourists' trips will increase.
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