Time to “hunt” zero dong promotion?

Thanh Nien Newspaper reported that the Civil Aviation Authority of Vietnam has simply submitted to the Ministry of Transport a draft Round stipulating the worth bracket for passenger transport companies on home routes. Wherein, the Division proposed to use flooring costs, the minimal value is the same as 20% of the required most value.

Particularly:

– For routes below 500 km, the minimal value proposed for the group of socio-economic growth routes is 320,000 VND/ticket/approach, the utmost is 1.6 million VND/approach. Different routes below 500 km, the minimal value is 340,000 VND, the utmost is 1.7 million VND.

– Flight routes from 500 – 850 km or extra, the minimal value is 440,000 VND and the utmost value is 2.2 million VND.

– Flight routes from 850 km – below 1,000 km, the corresponding value is 560,000 VND and most 2.79 million VND.

– The flight route is 1,280 km or extra, the minimal value is 750,000 VND, the utmost is 3.75 million VND.

The Civil Aviation Administration of Vietnam defined this proposal, saying that from the start of 2020 till now, the impression of the Covid-19 pandemic precipitated a pointy decline in air transport output. The airline doesn’t function all worldwide flights, whereas home flights are additionally diminished or the variety of passengers is considerably diminished.

On the similar time, airways nonetheless have to keep up fleets with the identical quantity, and even bigger than the variety of plane in 2019. Income dropped sharply whereas prices fell not on the similar fee as income, resulting in a pointy decline in income. to airways whose fee money movement is disrupted.

These are the principle and basic causes that instantly adversely have an effect on the effectivity of air transport enterprise and manufacturing, posing a risk to the existence of airways.

Airways have repeatedly lowered the promoting value, to maximise the effectivity of utilizing the seats on the airplane, to generate money movement to keep up enterprise operations.

After Vietnam Airlines, the Civil Aviation Administration also proposed to apply the floor price of air tickets: No promotion for 0 dong?  - Photo 1.

The Division of Aviation confirmed The proposal to use the air ticket flooring is an pressing and non permanent coverage to unravel difficulties brought on by the impression of Covid-19. In line with a consultant of the Civil Aviation Administration, the above value bracket is near the fact when it comes to the common price of Vietnamese airways; roughly the bottom value of rail service (air-conditioned delicate seats) and on par with highway transport.

Legitimate for 1 yr

In line with the Site visitors Newspaper, as a result of the coverage is situational in nature, within the fast future, the Civil Aviation Administration of Vietnam proposes that the time to use the coverage of minimal value equal to 20% of the utmost regulated value is 12 months, from 1 November 11, 2021 ends on December 31, 2021.

In line with the Civil Aviation Authority of Vietnam, the home aviation market will get better earlier than the worldwide aviation market and a full restoration in 2023 is feasible. As well as, the extended consideration of this coverage will be finished if the home market continues to face difficulties like in 2021.

Nevertheless, in the long run, when the market has returned to regular, the Division proposes to handle home air transport service costs based on the self-regulating market mechanism to be in keeping with worldwide practices.

Commenting on the proposal to impose this flooring value, Common Secretary of the Vietnam Air Transport Affiliation – Bui Doan Ne stated:Mainly, the worth is decided by the connection of provide and demand, the market decides. Worth is a aggressive instrument of enterprises when there are lots of suppliers, the beneficiaries are prospects.

In troublesome circumstances because of the Covid-19 pandemic, aviation and tourism are the industries which have suffered heavy losses. The lack of the world and home aviation trade reaches tons of of billions of {dollars}. All airways have huge losses from transportation and aviation enterprise, and now they’re racing to cut back costs, it reduces sources and reduces monetary power.”

Most not too long ago, at the start of April 2021, Vietnam Airways additionally proposed to use a flooring value for air tickets. If the proposal of Vietnam Airways or the Civil Aviation Administration is authorized, promotions for airfares of zero dong or tremendous low-cost, 9,000 dong, 19,000 dong, 26,000 dong… (excluding taxes and charges) may also be disappear.

Ngoc Diep

By Enterprise and Advertising and marketing

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