May 12, 2024 | 08:45 GMT+7

Vietnam's Airfare Inspection Reveals No Violations, But Room for Improvement

A recent inspection by the Civil Aviation Authority of Vietnam (CAAV) into airline ticket sales, pricing, and disclosures has found no violations of government regulations. However, the review highlighted inconsistencies in how airlines present fare information to consumers and a lack of awareness regarding promotional offers.

The CAAV found that airlines have not effectively communicated promotional programs and discount policies to the public yet their ticket prices fall within the regulated frames.
The CAAV found that airlines have not effectively communicated promotional programs and discount policies to the public yet their ticket prices fall within the regulated frames.

The inspection, which covered Vietnam Airlines (VNA), VietJet Air, Bamboo Airways, Vietravel Airlines, and six ticket agents, focused on the period from January 1 to May 4, 2024.

It found that all airlines adhere to the fare structures set out in Circulars 17 and 34, which regulate domestic airfares.

"All airlines comply with the air ticket prices of Circulars 17 and 34 on domestic routes," confirmed the CAAV. "At the same time, [they] strictly comply with regulations on listing and price declaration according to regulations."

Despite this compliance, the inspection revealed that the way airlines present fare information on their websites could be improved. Inconsistent terminology and a lack of clarity around the various fees and surcharges can lead to confusion among consumers, who may not fully understand the total cost of their ticket.

Additionally, the CAAV noted that airlines have not effectively communicated promotional programs and discount policies to the public, potentially hindering passengers' ability to find the best deals.

Addressing Consumer Concerns

The CAAV has directed the four airlines to review and adjust their online fare displays, ensuring that all components of the ticket price are clearly presented. The agency also plans to work with the airlines to standardize presentation methods and ensure transparency.

In response to consumer complaints about high ticket prices, the CAAV set up an email channel for passengers to report potential violations. As of May 10, the agency had received 11 complaints, but none of them were found to be violations of price regulations.

Rising Airfares

The inspection also revealed an overall increase in basic economy class fares on domestic routes compared to the same period in 2023. On the three main routes – Hanoi-Ho Chi Minh City, Hanoi-Da Nang, and Ho Chi Minh City-Da Nang – average ticket prices rose for all airlines.

VNA saw increases of 19.9%, 28.4%, and 14.9% on these routes, respectively, while VietJet's fares increased by 17.9%, 39.9%, and 27%. Bamboo Airways and Vietravel Airlines also experienced price increases.

However, the CAAV emphasized that the majority of tickets sold on these key routes still fall within the low and medium price segments, accounting for 60-70% of sales.

Additional Fees and Surcharges

The report also shed light on the various fees and surcharges that can add to the base fare of a ticket. These include system administration surcharges, system service surcharges, utility service surcharges, and ticket booking service surcharges.

While these fees are listed on airlines' websites, the CAAV found that they are not presented consistently across all carriers, leading to potential misunderstandings.

For tickets purchased directly at airline ticket offices, passengers may incur an additional fee of VND 50,000 (USD 2), which does not apply to online purchases.

The CAAV will continue to monitor airfare trends and respond to consumer feedback. The agency plans to maintain open communication with airlines to ensure compliance with regulations and enhance transparency in pricing.

Despite the recent rise in airfares, the inspection results suggest that the Vietnamese aviation market remains competitive, with a significant portion of tickets still available at affordable prices.

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