What is the statutory maximum fare for a basic economy class domestic flight ticket in Vietnam? What are the rules for determining domestic flight tickets in Vietnam?
On May 3, 2019, the Minister of Transport of Vietnam issued Circular 17/2019/TT-BGTVT on the price bracket for passenger transport services on domestic routes. In particular, the maximum economy class domestic airfare in Vietnam is specified as follows:
What are some common terms in the regulations of airfare?
According to Article 2 of Circular 17/2019/TT-BGTVT of Vietnam as follows:
- The basic economy class passenger service fee is the service fee that the passenger must pay for the journey used in the economy cabin of the aircraft for the service class that meets the basic requirements of the majority of passengers in flight from ground service to air service.
- Service price for additional items is the service price that passenger has to pay for the additional service that the passenger has the choice to use or not to use provided by the airline in order to meet the passenger's request on the flight from ground service to air service.
- Flight path distance is the distance determined according to common flight distances, including altitude flight distance, round trip to enter the airway, flight on air route, descending altitude, roundabout approach to landing.
- The group of routes for socio-economic development are those with a distance of less than 500km, flying to deep-lying, remote areas, bordering islands and being operated by only one airline.
What is the statutory maximum fare for a basic economy class domestic flight ticket in Vietnam? What are the rules for determining domestic flight tickets in Vietnam?
What is the service price bracket of domestic flight tickets in Vietnam?
According to Article 3 of Circular 17/2019/TT-BGTVT of Vietnam, the service price bracket of domestic flight tickets is regulated as follows:
- Rules of determining the price bracket for passenger transportation services are specified in Article 3 of the Circular No. 36/2015/TT-BGTVT dated July 24, 2015 of the Minister of Transport on price management of domestic air transportation services and specialized aviation services.
- The price bracket for passenger transport services on domestic routes ranges from VND 0 (zero) to the maximum of each group of flight distances. The airline decides the price range of passenger transportation services in the price bracket for passenger transportation services to ensure that it is consistent with the actual production and business costs of each flight.
What are the regulations on the rules of determining the price of domestic flight ticket service in Vietnam?
According to Article 3 of Circular 17/2019/TT-BGTVT of Vietnam, the rules for determining domestic flight ticket service prices are as follows:
- General rules for prices of domestic air transportation services and prices of specialized aviation services:
+ Service prices are determined on the basis of reasonable actual production and business costs; consistent with service quality, supply and demand situation in the market;
+ The price level is consistent with the socio-economic development policy in each period and in line with the price level of the same type of service in the ASEAN region;
+ Service prices must ensure competitiveness, not abuse the monopoly position.
- In addition to the general rules specified in Clause 1 of this Article, organizations and individuals providing specialized aviation services must comply with the following rules:
+ The price of aviation services for international flights is determined on the basis of ensuring the return of investment capital, creating accumulation for the unit, suitable for output and investment scale; allowing the application of pricing methods to improve the quality of services provided by the airport;
+ Air service prices for domestic flights are determined on the basis of domestic market prices, taking into account the relationship between domestic and international prices of the same type of service;
+ Prices of non-aviation services at airports and aerodromes are made on the rule of non-exclusivity, suitable for the market, ensuring the interests of customers and regulations of law on prices.
What is the statutory maximum fare for airfare in Vietnam?
According to Article 4 of Circular 17/2019/TT-BGTVT of Vietnam as follows:
- Price bracket for basic economy class passenger transportation service is as follows:
- The maximum service price specified in Clause 1 of this Article includes all expenses payable by passengers for 01 flight ticket, except for the following revenues:
Group | Flight path distance | Maximum fare (VND/one-way ticket) |
I | Under 500 km |
|
1. | Group of routes for socio-economic development | 1,600,000 |
2. | Other group of routes under 500 km | 1,700,000 |
II | From 500km to under 850 km | 2,200,000 |
II | From 850 km to under 1,000 km | 2,790,000 |
IV | From 1,000 km to under 1,280 km | 3,200,000 |
V | From 1,280 km or more | 3,750,000 |
+ Value added tax;
+ Revenues on behalf of enterprises providing passenger terminal services and security services, including: passenger service prices, passenger and luggage security assurance prices;
+ Service charges for additional items.
- Service prices for additional services are decided by airlines on the basis of balancing the airline's service provision capacity and market demand.
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