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Legislators discuss ceiling and floor prices for air tickets

Raising or keeping the current ceiling price and floor price for domestic air tickets remained a contentious issue among National Assembly deputies.
Legislators discuss ceiling and floor prices for air tickets ảnh 1Planes at Noi Bai International Airport in Hanoi. (Photo: VNA)
Hanoi (VNS/VNA) - Raising or keeping the currentceiling price and floor price for domestic air tickets remained a contentiousissue among National Assembly deputies. 

Deputy Tran Van Lam from the northern province of Bac Giang toldreporters on the sidelines of the ongoing 5th session of the 15th NationalAssembly that deputies had been showing great interest in this particularissue.

Regarding the draft Law on Pricing, which has been put on thefloor during this NA meeting, Lam said the law favoured the abolishment of thefloor price, based on conditions of the current market. 

Deputies stressed the importance of regulating domestic airfares.While ideally, the state should not have to intervene but rather leave it tothe market to determine prices based on market principles, the domestic airtravel market was not yet mature enough. 

Lam said there were still monopolies in the market with a numberof routes having just one operator. In addition, the state must still reservethe right to intervene in the market in the event of natural disasters andabnormal weather conditions that may distort the rules of supply anddemand. 

"We have observed over the years while there are manyairlines in the domestic markets monopoly has yet to disappear," he said.

"There are routes with numerous operators with fair pricingand competition, while there are routes with just one operator. This is despitethe aviation authority's encouragement for other airlines to jump in due to lowdemand and operational difficulty," he added. 

In addition, demand for air travel tends to be heavily seasonal,with demand shooting through the roof during certain times of the year. 

Deputies said even when demand is large it would not be easyfor airlines to scale up their operations. Without the complete elimination ofmonopoly in the market, the state must continue to intervene to ensure therights and benefits of consumers are protected. 

Some argued that the floor price was still required to preventunhealthy competition among airlines, preventing some bigger players from goingbelow cost to eliminate all competition. 

Regarding promotional events in which airlines advertised zerodong tickets, deputies said those were few and far between with very limitedseats sold, which should be considered a marketing tactic./.



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