Upcoming Price Surge for Airline Tickets

Starting from March 1st, the new regulation from the Ministry of Transport states that the ceiling price will be adjusted upwards by approximately 5% compared to the previous rate. It is worth noting that this is the first adjustment in nearly 10 years.

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At the International Airline Symposium (IAS) 2024 held today (28/2) in Hanoi, some experts have stated that Vietnam is one of the few countries in the world that is controlling the ceiling and floor prices of air tickets. In the future, Vietnam’s aviation industry will aim for an open market when it has competitiveness and is properly regulated.

Increasing the price ceiling of air tickets can help passengers with low purchasing power access air services. Photo: NIA.

According to representatives of airlines, there have been many changes in the input costs of the aviation industry over the past time. Therefore, the new regulations on ticket prices create opportunities for operators to compensate for the sharp increase in operating costs due to factors such as fuel prices, exchange rates used by the aviation industry in USD. However, increasing the price ceiling for air tickets also benefits passengers.

Mr. Le Hong Ha – General Director of Vietnam Airlines – said that airlines will continue to adjust their price ranges on domestic flights. When expanding the price ceiling, businesses can continue to invest in service quality in the high-end customer segment.

“This helps airlines to be able to lower their prices to serve the needs of passengers in the budget segment. In addition, in the low season of the market, the airline will apply more promotional programs,” Mr. Le Hong Ha said.

According to Circular No. 34/2023/TT-BGTVT, effective from March 1, the Ministry of Transport has revised the basic economy class passenger transportation service price framework. Notably, routes with a distance of less than 500 km will have a price ceiling of 1.6 million VND/ticket/one way for economic – social development routes and 1.7 million VND/ticket/one way for other routes.

The remaining route groups have adjusted the price increase from 50,000 – 250,000 VND/ticket/one way compared to the old regulations, depending on the length of each route.

Specifically, for routes from 500 km to less than 850 km, the price ceiling is 2,250,000 VND/ticket/one way, routes with a distance from 850 km to less than 1,000 km have a maximum fare of 2,890,000 VND/ticket/one way, routes from 1,000 km to less than 1,280 km have a ceiling price of 3,400,000 VND/ticket/one way, and routes with a distance of 1,280 km or more are 4,000,000 VND/ticket/one way.

Therefore, routes Hanoi – Ho Chi Minh City, Hanoi – Phu Quoc with a distance of 1,280 km or more have the highest ceiling price increase at 6.25% and 6.67%. Meanwhile, route groups under 500 km such as Ho Chi Minh City – Da Lat, Hanoi – Vinh will maintain the ticket price.

SOURCEcafef
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