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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.
Airfare rules to stay, says Transport Minister ảnh 1Travellers queue up to check in for flights at the Da Nang International Airport (Photo dantri.com.vn)
 
 Hanoi (VNA) - The Ministryof Transport has no plan to change the current regulations on airfares,Minister Truong Quang Nghia has confirmed.

Chairing a meeting with theministry’s Party Civil Affairs Committee last week, he said that airlines haveroom for airfare reductions, then “why don’t we allow them?”

Transport authorities insteadshould focus on strengthening State management of the aviation market, which isexperiencing strong growth, he said.

“We have to change our managementmindset,” Nghia said, adding that efforts should be directed towards ensuringmaximum security, safety and service quality for end-users of aviationservices.

Management agencies should onlysee if airlines were offering discounted fares in accordance with regulations,he said.

The pricing regulations foraviation services should be rational and acceptable (to all stakeholders) whilehelping improve tax collection for infrastructure investment, Nghia said.

A proposal made by one airline toset a floor price for economy-class fares on domestic routes has been includedin a draft document prepared by the ministry and released to gather publicfeedback.

The document is set to replacethe Ministry of Finance’s Decision No 3282/QD-BTC issued in 2014.

The proposal has raised concernamong people and experts that the floor price would work against market rules,leading to unhealthy competition among airlines, affecting consumerinterests.-VNA
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