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    Put your ticket in the price control scheme

    Reminds the Transport Ministry to draw on experience in how to operate airfares, the Deputy Prime Minister asked to include the content of adjusting airfares into the price control scheme.

    At the meeting of the Government's Steering Committee for Price Management on the morning of July 10, the issue of airfare was raised.

    May slightly increase the ticket price
    Deputy Minister of Transport Le Dinh Tho said that the Ministry has directed the Aviation Department to stabilize fares in the context of rising world oil prices and exchange rate fluctuations.

    According to Tho's deputy minister, if the petrol price increases too high, the aviation department can direct the domestic airlines to increase the fare.

    Since the beginning of this year, the price of gasoline in the country has increased, causing the traffic index to increase 5.68% while the average CPI of 6 months increased 3.29%, according to data of the Domestic Market Department , Ministry of Industry and Trade. Compared to the end of 2017, the maximum retail price of petroleum products in the country has increased from 7.5 to 17.9%. Meanwhile, world oil price tends to rise higher than expected.

    Recently, at the shareholders' meeting, Vietnam Airlines said that the average gasoline cost accounted for 30% of the total operating expenses of the enterprise, of which the highest was 38% and the low rate was 24-25% .

    For every dollar of oil price increases, Vietnam Airlines's cost increases by about 230 billion VND a year.

    However, the transfer of increased costs due to gasoline price fluctuations to increase ticket prices also have to consider the purchasing power of the market, said General Director of Vietnam Airlines, Duong Tri Thanh.

    "It is not up to the price of gasoline to increase the ticket price but to ask the price adjustment question to meet the purchasing power of the market," Thanh told shareholders.

    Learn from experience
    Deputy Prime Minister Vuong Dinh Hue at the session on price control said that the Ministry of Transport has experienced the reconsideration of airfares management in recent years, not to adjust the fare during the time. People travel a lot and put content adjustment airfares, bus tickets into the control price of the Ministry.

    Dua ve may bay vao phuong an kiem soat gia hinh anh 1

    In 2017 and early 2018, airfares have continued to increase slightly as regulators and airlines adjust the airfreight tariffs in the direction of increase. Some typical fees recently increased are system administration fee, security service charge ...

    Recently, Vietnam Airlines said that from the beginning of July 2018 will apply the surcharge management system. With domestic short-journeys (less than 850 km) the system management surcharge of 80,000 VND / trip, and over 850 km surcharge is 150,000 VND / trip.

    International flight tickets are subject to a surcharge of $ 7 per trip. Business class fares, special fares and flexible universal fares are exempt from these system administration surcharges.

    Vietjet Air and Jetstar Pacific have also increased their system administration fees. Vietjet Air raised this fee from 140,000 VND / ticket to 210,000 VND / ticket (up 70/000) from June 1st. The international routes have increased rates depending on each route in accordance with the actual exploitation of the airline.

    Jetstar Pacific also adjusted the fee to 210,000 dong (excluding VAT), up 70,000 compared with the previous. The new charge applies from June 4.

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