The Ministry of Transport has just issued Circular No. 34/2023 amending and supplementing a number of articles of Circular No. 17/2019 on the price framework for passenger transport services on domestic flights (ceiling airfare prices), effective from March 1, 2024.
Airline ticket prices will increase from March 1, 2024
Accordingly, the circular amends the price frame for basic economy class passenger transport services. Flights with a distance of less than 500 km have a ceiling price of 1.6 million VND/ticket/way for socio -economic development flights and 1.7 million VND/ticket/way for other flights under 500 km.
The remaining flight groups will have their prices increased by 50,000 - 250,000 VND/ticket/way compared to the old regulations, depending on the length of each flight.
In the context of constantly fluctuating fuel prices and foreign exchange rates, airlines are facing many difficulties as their revenue is not enough to cover expenses and production and business recovery is facing many obstacles.
Specifically, flights from 500 km to under 850 km have a ceiling price of 2.25 million VND/ticket/way.
Flights with distances from 850 km to under 1,000 km have a maximum ticket price of VND 2.89 million/ticket/way.
Flights from 1,000 km to under 1,280 km have a ceiling price of 3.4 million VND/ticket/way.
Flights with a distance of 1,280 km such as Hanoi - Phu Quoc or more are 4 million VND/ticket/way.
The maximum price includes all costs that passengers must pay for an air ticket, excluding value added tax and fees collected on behalf of the airport (including passenger service fees and passenger and baggage security fees; service fees with additional items).
Previously, the Ministry of Transport said that the proposal to increase domestic airfares was due to changes in factors forming ticket prices, especially rising fuel prices and high exchange rates.
The Civil Aviation Authority of Vietnam also received comments from Vietnam Airlines, Vietjet, Pacific Airlines, and Bamboo Airways about increasing domestic airfares because the ceiling airfare has remained the same since 2015. This ceiling is considered no longer suitable for the domestic flight situation.
However, in reality, domestic airfares are quite high, many consumers instead of choosing domestic travel have switched to traveling to countries in the region because airfares are too expensive.
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