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Vietjet Air proposed not to regulate the ceiling and floor prices of domestic air tickets, and to increase the capital contribution ratio of foreign investors in aviation enterprises to 49% instead of no more than 34% as present.
Vietjet proposes to remove ceiling and floor prices for domestic air tickets
The proposals to remove ceiling and floor prices for air tickets were made by Vietjet when giving opinions to the Ministry of Transport on the proposal to develop the Law on Civil Aviation (amended). The Ministry of Transport has sent the dossier to the Ministry of Justice for appraisal.
According to Vietjet, the Law on Prices currently stipulates a ceiling price for domestic economy airfares. The Ministry of Transport is seeking opinions on amending the circular on domestic airfares.
However, according to Vietjet's assessment, the revision of the ceiling price framework for air tickets has not been adjusted to the reality of the market, so airlines will continue to face many difficulties in balancing business efficiency.
Meanwhile, countries in the region do not regulate ceiling and floor prices. Due to the nature of business activities, ticket prices will change depending on market supply and demand, seasonality and flight times. Therefore, Vietjet recommends considering removing the ceiling and floor price regulations.
This is very important, helping airlines have enough financial resources, especially in the context of the COVID-19 pandemic that has significantly reduced the resources of airlines. From there, creating competition with airlines around the world.
Vietjet proposed to amend regulations, increasing the foreign ownership ratio in Vietnamese airlines to 49% instead of the current 34% of charter capital. This is to help Vietnamese airlines attract foreign investment.
According to Vietjet, the regulation that foreign investors hold no more than 34% of charter capital at Vietnamese airlines aims to ensure the control of Vietnamese shareholders over important decisions of aviation enterprises.
However, this regulation makes it difficult for listed airlines to attract investment capital from foreign investors through the stock market; it does not encourage foreign investors to boldly transfer capital, technology and management experience to develop domestic airlines.
Vietjet believes that the draft outline of the Aviation Law is considering the mechanism to control, guide, and report to Vietnamese authorities on aircraft purchases by airlines, which is inappropriate.
This idea may come from the need to manage and regulate the size of domestic airlines' fleets in the context of overloaded and backward aviation infrastructure.
But from Vietjet's point of view, controlling airlines' aircraft purchasing plans is not in line with the trend of business integration, limiting businesses' freedom of business according to the law.
On the other hand, Vietjet's purchase of aircraft not only serves the purpose of developing its own fleet but also serves business purposes in the form of selling and leasing back aircraft according to international practice, in accordance with Vietnamese regulations.
Therefore, Vietjet proposed to create a mechanism that allows airlines to report their annual fleet development plans and the Ministry of Transport will approve them in general. From there, airlines will proactively comply with the country's aviation regulations and planning.
Additional sanctions to limit unfair competition in aviation human resources Commenting on the proposal to develop the Civil Aviation Law to the Ministry of Transport, Vietnam Airlines proposed to clearly stipulate that: for airlines that have just entered the market or are operating, when developing their fleet, they must have a plan to ensure self-development of at least 50% of human resources including pilots, aircraft engineers, and managers. At the same time, sanctions should be added to airlines that violate the law and strictly enforced to limit unhealthy competition in human resources. |
According to Tuoi Tre
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