Airfare rules to stay, says Transport Minister
The Ministry of Transport has no plan to change the current regulations on airfares, Minister Truong Quang Nghia has confirmed.
Chairing a meeting with the ministry’s Party Civil Affairs Committee last week, he said that airlines have room for airfare reductions, then “why don’t we allow them?”
Transport authorities instead should focus on strengthening State management of the aviation market, which is experiencing strong growth, he said.
“We have to change our management mindset,” Nghia said, adding that efforts should be directed towards ensuring maximum security, safety and service quality for end-users of aviation services.
Management agencies should only see if airlines were offering discounted fares in accordance with regulations, he said.
The pricing regulations for aviation services should be rational and acceptable (to all stakeholders) while helping improve tax collection for infrastructure investment, Nghia said.
A proposal made by one airline to set a floor price for economy-class fares on domestic routes has been included in a draft document prepared by the ministry and released to gather public feedback.
The document is set to replace the Ministry of Finance’s Decision No 3282/QD-BTC issued in 2014.
The proposal has raised concern among people and experts that the floor price would work against market rules, leading to unhealthy competition among airlines, affecting consumer interests.
Transport authorities instead should focus on strengthening State management of the aviation market, which is experiencing strong growth, he said.
“We have to change our management mindset,” Nghia said, adding that efforts should be directed towards ensuring maximum security, safety and service quality for end-users of aviation services.
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The pricing regulations for aviation services should be rational and acceptable (to all stakeholders) while helping improve tax collection for infrastructure investment, Nghia said.
A proposal made by one airline to set a floor price for economy-class fares on domestic routes has been included in a draft document prepared by the ministry and released to gather public feedback.
The document is set to replace the Ministry of Finance’s Decision No 3282/QD-BTC issued in 2014.
The proposal has raised concern among people and experts that the floor price would work against market rules, leading to unhealthy competition among airlines, affecting consumer interests.
