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Department of Aviation’s comment on listing arguments

Department of Aviation’s comment on listing arguments

Sunday 20, 10 2019
listing arguments of airlines Director Dinh Viet Thang said “The point is to list the price in full, including the components that make up the price."

The prices must be listed in full!

On 13th September, the Vietnamese Department of Aviation had a meeting with the Department of Price Management of the Ministry of Finance and airlines regarding the issue of airplane ticket price listing, whether to include taxes, charges, and other fees in the listed price.
Commenting on how to list the ticket price, the Director Dinh Viet Thang said: “The point is to list the price in full, including the components that make up the price”.
According to him, soon the Department of Aviation will send a report to the Ministry of Transportation to adjust the Circular on passenger transport service price brackets on domestic routes, in which there will be more detailed regulations on unified form and content of listing among airlines.
“The Department of Aviation is currently managing price declaration only, while the price listing is managed by the Department of Price Management (The Ministry of Finance). This regulation will assist price transparency and benefit customers” – Mr. Thang added.

Easy to misunderstand, compete

The argument on price listing among airlines has arisen since the beginning of September as Vietnam Airlines sent documents to the Department of Price Management and the Department of Aviation to request these agencies to require other airlines to perform ticket price listing in accordance to the regulations, to include taxes, charges, and other fees in the ticket price.
Vietnam Airline provides evidences of customers accessing their official website and selecting the route and departure dates that have received the full fare information that needs to be paid when purchasing ticket. However, other airlines have only listed the ticket price without taxes on their websites, thus customers only know the actual price to pay (including taxes and fees) after selecting the ticket and opening the “price detail” page.
According to Vietnam Airlines, this disunity of price listing not only results in customers’ confusion, but also affecting the competitiveness of these airlines in the market, thus they suggest that there should be a solution to require and ensure other airlines to implement the price listing regulations.

Who is wrong?

In their report to the Department of Price Management and the Department of Aviation, Deputy General Manager of Vietjet, Nguyen Thanh Son said that the ticket price listing which includes taxes and charges in the price like  Vietnam Airlines’ method doesn’t ensure openness and transparency. Vietnam Airlines is applying the combined price listing without listing the details of the components that make up the total price.
He said: “For example, the ticket price for a domestic flight of Vietjet listed on their website has full information of the original ticket price, taxes, charges, and optional services such as in-flight meals, pick-up service, etc. Meanwhile, the ticket prices listed on the website of Vietnam Airlines only include combined price of everything without clearly identifying the constituent elements. With the current law, there is not enough legal basis to confirm which method is legal and which is illegal.
Vietjet affirmed that the airline chose the method of listing details of each ticket pricing (net fare). This method is not illegal, while ensuring the openness and transparency of the fare, and it offers more alternatives for passengers. Vietnam currently has 5 operating airlines, of which Vietjet, Bamboo Airways and Jetstar Pacific apply the net fare method for their ticket price listing.”
“If we apply the method of combined fares, it will not guarantee the openness and transparency because customers do not know the specific components of the ticket price. Customers may have to pay for the services they don't need. It is unreasonable and does not guarantee maximum benefits for customers, ”Mr. Son said.
Vietjet's Deputy General Director informed that in the current international treaties on aviation, only general rules are provided for the listing of air fares and no specific binding on the method of posting prices of the airlines.
Compiled by Vietnamnet - Translated by Vietnam Credit

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