Flight prices on the rise as virus outbreak situation improves

Airlines have started operating more Hanoi-HCM City flights after the ban was relaxed and as a result, ticket prices have also picked up. Listed prices from April 20 to 24 by Vietnam Airlines show that a return ticket cost VND5.1m (USD217) to VND5.6m, including all taxes and fees.

A return economy class ticket of Vietjet Air cost VND3.8m (USD162) and the Skyboss class ticket costs VND6.6m, not including taxes and fares. A Bamboo Airways ticket without taxes and fees also costs around VND3.8m.

According to the airlines, because of social distancing, each passenger must be one seat apart from each other so the number of passengers will not be high. Flight fares definitely have picked up compared to the record zero cost listed on websites when flights were banned. However, the fares are still stable and do not reach the ceiling level. It may change when the situation continues to improve.

A leader from the Civil Aviation Administration of Vietnam said that it was understandable that each airline and flight routes have different fare rates. The prices may seem high because of high demand and low supply, especially for Hanoi-HCM City route. The current number of flights are only 5-6% compared to previously.

Due to Covid-19 pandemic, Deputy Minister of Transport Le Anh Tuan previously ordered the Civil Aviation Administration of Vietnam to limit the number of passenger flights to and from Hanoi, HCM City, Phu Quoc and Danang to one flight a day from March 30 to April 15.

Circular 17 about ceiling rates for airfares for domestic routes state that routes for socio-economic development, which are less than 500km long, fly to remote and mountainous island-bound areas and only one airline operates have a maximum rate of VND1.6m (USD68) per one way ticket. Other routes under 500km have a maximum price of VND1.7m per one way ticket.

The routes of 500km to under 850km have a maximum ticket price of VND2.2m (USD94) per one way ticket. Meanwhile, the route of 850km to under 1,000km have a maximum ticket price of VND2.79m per one way ticket. The distance of 1,000km to under 1,280km have a maximum fare of VND3.2m per one way ticket. The flight distance of 1,280km upward, the maximum ticket price is VND3.75m per one-way ticket.

Those ceiling fares do not include value-added tax; charges collected from enterprises providing passenger terminal and security services, including passenger service charge, passenger and baggage security price, receipts for additional services provided by airlines which passengers have the option on. Dtinews

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