From March 1, 2024: to increase in domestic air ticket prices in Vietnam

From March 1, 2024: to increase in domestic air ticket prices in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

From March 1, 2024: to increase domestic air ticket prices in Vietnam

On November 30, 2023, the Minister of Transport issued Circular 34/2023/TT-BGTVT, amending and supplementing a number of articles of Circular 17/2019/TT-BGTVT promulgating a price framework for passenger transportation services on domestic routes.

According to Circular 34/2023/TT-BGTVT, which amends Article 4 of Circular 17/2019/TT-BGTVT, the price frame for basic economy-class passenger transportation services is as follows:

Note: The maximum service price specified above includes all costs the passenger must pay for 01 airline ticket, except for the following fees:

- V.A.T. tax;

- Revenues collected on behalf of businesses providing passenger terminal services and security services, including: passenger service prices and passenger and luggage security prices;

- Service fees for additional items.

Service prices for additional services are decided by airlines on the basis of balancing the airline's ability to provide services with market demand.

Responsibilities of the Civil Aviation Authority and airlines in Vietnam

- Responsibility of the Vietnam Aviation Administration

+ Announce the list of domestic routes according to flight distance groups.

+ Inspect, monitor, and report to the Ministry of Transport on the results of implementing the transportation service price framework according to the provisions of the law on specialized aviation prices.

(Article 5 of Circular 17/2019/TT-BGTVT)

- Responsibility of the airline

According to Article 6 of Circular 17/2019/TT-BGTVT, the responsibilities of airlines are as follows:

- Airlines regulate specific ticket prices on routes or groups of routes by diversifying ticket prices for each route and implementing regular discount policies for compatriots and resident soldiers in remote, border, and island localities.

- Declaring specific prices with the Civil Aviation Authority of Vietnam and publicly announce prices according to regulations in Circular 36/2015/TT-BGTVT of the Minister of Transport on the management of domestic air transport service prices and specialized aviation service prices, and Circular 07/2017/TT-BGTVT amending and supplementing a number of articles of Circular 36/2015/TT-BGTVT on managing domestic air transport service prices and specialized aviation service prices.

- In case airlines open new routes that have not been announced in the flight distance group announced by the Vietnam Aviation Administration, the airline is responsible for reporting to the Vietnam Aviation Administration to consider and regulate the addition of new routes to common flight distance groups before the airline declares prices with the Vietnam Aviation Administration.

Nguyen Ngoc Que Anh

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