On August 21, the Ministry of Transport said it had received questions from voters in Ho Chi Minh City about airfares. "Voters said that domestic airfares are currently high, and requested the ministry to review fees and charges, analyze and evaluate the reasonableness of prices and costs of organizing the apparatus of airlines and ground service organizations."
Responding to voters, the Ministry of Transport said that flight costs and fuel account for 37-42%; costs related to aircraft equipment, repair and maintenance account for 32-41%; ground service and flight operations account for 6-7%. The remaining costs such as labor, sales, management, passenger service, etc. account for 16-19%.
According to Circular 17/2019, airfares are made up of passenger transport service prices; value added tax (VAT); amounts collected on behalf of enterprises providing airport and security services, and service prices for additional items decided by the airline.
Since the beginning of 2024, the average economy class ticket price on some routes (including taxes and fees) of Vietnamese airlines has increased compared to the same period in 2023. Through checking the ticket sales activities of airlines, the Ministry of Transport has recorded that the airlines have complied with the regulations on maximum prices (within the price range) for economy class on domestic routes.
The increase in airfares is part of a global trend due to a decline in the size of the aircraft fleet, increased travel demand during holidays and Tet, and fluctuations in fuel prices and foreign exchange rates. In July, the USD exchange rate increased by 7.4% compared to the same period in 2023 and 10% compared to the same period in 2021, while 80% of aviation costs are related to foreign currency.
The Ministry of Transport will continue to implement solutions to ensure stable ticket prices, balance transportation on routes and between the domestic and international markets. The focus will be on adjusting aircraft operating times, reducing aircraft turnaround times when transferring flights to optimize aircraft operating capacity during the day; and increasing night flights.
In addition, the ministry will strengthen supervision of price declaration and posting, and publicize price information according to regulations, as well as recommend that passengers plan to book tickets early to have the opportunity to choose the appropriate ticket price.
Recently, the fleet of Pacific Airlines and Bamboo Airways has been reduced sharply due to business restructuring. The engine recall by Pratt & Whitney has affected the reduction of the fleet of the airlines. Currently, the total number of aircraft operated by all Vietnamese airlines is only about 160, a shortage of 60-70 compared to before the pandemic.
"The reduction in aircraft is the cause of fluctuations in ticket prices, especially during times when demand for air transport increases during holidays and Tet," said the Civil Aviation Authority of Vietnam.
TB (according to VnExpress)Source: https://baohaiduong.vn/bo-giao-thong-van-tai-se-binh-on-gia-ve-may-bay-390975.html
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