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Friday, July 19, 2024

National Assembly approves airfare caps

The Saigon Times

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HCMC – The National Assembly has approved maintaining airfare price ceilings in the revised Pricing Law, which was passed yesterday, June 19.

With nearly 93% of the deputies present at the NA sitting voting in favor, the revised Pricing Law will come into force on July 1 of next year.

Under the law, the Government will continue to set airfare price ranges and apply caps for this service.

The NA Standing Committee previously explained that maintaining airfare caps allows the Government to effectively manage aviation services, stabilize the domestic air market, and ensure affordable access to air travel for residents, particularly those having low incomes.

According to the NA Standing Committee, although there are currently six domestic airlines in service, the domestic aviation market is dominated by three major carriers, with Vietnam Airlines holding 35%, Vietjet Air capturing 40%, and Bamboo Airways making up 16% of the air transport market.

Maintaining domestic airfare caps will not impede the rights of aviation businesses to determine their service fees, including airfare prices. The caps will only apply to economy-class air tickets on domestic routes.

The Ministry of Transport plans to raise the domestic airfare caps by 3.75% in the near future.

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