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Tuesday,  Apr 24,2018,13:49 (GMT+7)

Minister says no floor airfare for domestic flights

Le Anh
Monday,  Apr 10,2017,21:54 (GMT+7)
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Minister says no floor airfare for domestic flights

Le Anh

HCMC - Minister of Transport Truong Quang Nghia has confirmed the ministry will not impose a floor airfare on domestic flights as a measure to regulate prices of air transport services for economy-class passengers on domestic flights and the local aviation market.

Nghia’s confirmation came at a working session of the Party committee of the ministry last Friday, days after Vietnam Airlines and its low-cost affiliate Jetstar Pacific proposed applying the floor economy-class airfare to domestic flights.

Nghia was quoted by a report posted on the ministry’s portal as saying that the ministry never puts the interests of airlines or enterprises above those of the people. It is important to adopt a proper mechanism to support fair competition, profitability and service quality of firms, and all enterprises should compete on an equal footing and in line with law. 

Nghia said the ministry will not change the prevailing regulations on air-ticket prices and will strengthen State management of flight operations.

He affirmed airlines are allowed to lower airfares as much as they could and that relevant agencies should check whether or not they sell promotional airfares in line with the current regulations.   

Nghia called for an improvement of State management of the aviation market, which has grown strongly over the years.

Earlier, Vietnam Airlines and Jetstar Pacific suggested the Civil Aviation Authority of Vietnam (CAAV) weigh the floor economy-class airfare on domestic routes. They said an air ticket price cut race has made inroads into their business efficiency and sustainable development of the local aviation market.

However, Vietjet argued that no floor fare should be imposed in any form as this would run counter to the Competition Law and international practices. The no-frills carrier said the floor airfare would eliminate competition among airlines to cut prices, thus limiting opportunities for people to travel by air.

Experts and consumers objected to any plan to apply the lowest economy-class airfare to domestic services as it would put a dampener on airlines’ efforts to improve service quality and take away discount air-tickets from millions of people.

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